‘Considerable potential’ for Malta to develop as a private equity and venture capital hub – PEVCA head

There is considerable untapped potential for Malta to develop further as a credible hub for private equity and venture capital, Martin Galea, Chairman of the Malta Private Equity and Venture Capital Association (PEVCA) said.

He explained that this hub would be one that combines regulatory integrity, economic substance and competitiveness within the European Union framework.

The Chairman introduced PEVCA’s State of Play Report 2026, which examines Malta not simply as a fund domicile but as a broader ecosystem. It recommends targeting emerging managers, mid-market funds and particular regions (including Central Europe, Africa and the Middle East) rather than competing for the mega-funds that dominate Luxembourg and Dublin.

The report, authored by Gavin Ryan, who spent 15 years as a mid-cap private equity fund manager, makes four recommendations: zero capital gains tax for local investors in PE and VC funds, to draw capital away from real estate; a Government-backed fund of funds with independent professional management; extension of the 15 per cent income tax rate to qualifying PE fund managers regardless of their ownership stake; and zero tax on carried interest for Malta-resident fund managers.

Mr Galea said that private equity and venture capital play a vital role in modern, innovation-driven economies.

“Beyond the provision of capital, they contribute expertise, governance, strategic guidance and long-term commitment to businesses at critical stages of growth. Across Europe, these investment models have become essential drivers of productivity, innovation and sustainable economic development, particularly for small- and medium-sized enterprises and high-growth startups."

He said that Malta has made significant progress over recent decades in establishing itself as a reputable international financial services centre. However, here he said that the report shows there is untapped potential for Malta to develop further as a credible hub for private equity and venture capital.

The Chairman said that strengthening this sector is important, not only for the financial services industry but also for the broader Maltese economy, as it supports entrepreneurship, innovation, job creation and long-term value creation.

He invited policymakers, regulators and industry participants to engage openly with ithe report’s findings and recommendations. “Through collaboration and shared ambition, Malta has the opportunity to strengthen its position as a forward-looking financial centre and to harness private equity and venture capital as engines of sustainable economic growth.”