Guernsey is a world-leading location in which to conduct investment fund business and in particular alternative investment fund business. There is vast experience in dealing with asset classes such as private equity, real estate, debt and infrastructure that are becoming ever-more popular amongst investors' portfolios. Guernsey has a growing reputation as being a centre of excellence.
Guernsey’s experience in private equity dates back to the early 1980s when these funds were in their infancy. Since that time, Guernsey’s funds industry has grown to become a leader in the formation and administration of private equity funds.
Promoters of private equity such as Aberdeen, Apax Partners, Better Capital, BC Partners, Cinven, Coller Capital, KKR, Permira, Terra Firma and Waterland can be added to the likes of Apollo, Aberdeen, HarbourVest, Inflexion, Macquarie, Mid Europa, Neuberger Berman, Park Square Capital and Pantheon that have a history of using Guernsey for their investment platforms.
Private equity firms that use Guernsey have a wide range of investment strategies including venture capital, buyout, mezzanine capital and distressed debt. The net value of private equity funds in Guernsey at 31 March 2020 stood at £188.4 billion.
Our private equity brochure goes into further detail on Guernsey's expertise in this area.
There are already an awful lot of general partner companies in Guernsey. There is a lot of administration, fund management and investor relations. In terms of putting your deal team here, it’s as good as anywhere else to put a pan-European team.
Jon Moulton, Founder, Better Capital
Guernsey is a jurisdiction with a proven track record in property funds. The island has experience dating back to the early 1980s when property funds were in their infancy, which is attractive for promoters looking for a jurisdiction in which to domicile their fund.
Promoters of property funds in Guernsey include AXA, CBRE, Duet, F&C, HSBC, M&G, Partners Group, Schroder, and Standard Life.
Today, in excess of £20 billion of property is held in Guernsey-domiciled real estate funds.
As the supply of bank credit has shrunk so the funds industry has acted to fill the demand, serving as a direct conduit between institutions and investors holding cash and companies and individuals requiring development finance, finance for expansion or the refinancing of existing arrangements.
Promoters of debt funds in Guernsey include Ashmore, Funding Circle, M&G, Neuberger Berman, and Starwood Capital.