Guernsey funds hit £100 billion private equity milestone

02 May 2017

The total value of private equity business in the international finance centre of Guernsey has surpassed £100 billion for the first time.

Figures from the Guernsey Financial Services Commission show that the net asset value of private equity funds under management and administration in the island grew by £25 billion over the course of 2016 to stand at £110.3 billion at the end of December.

Substantial launches during the course of last year by big ticket private equity promoters including Permira, Apax Partners, Cinven, Macquarie, Partners Group and Inflexion all contributed to the record-breaking high.

Guernsey Finance Chief Executive Dominic Wheatley said: “There has been a consistent undercurrent of fundraising on top of which we have seen a number of showstopper launches. This type of activity continues to underline the fact that Guernsey is an attractive destination for private equity funds due to our first-class financial services infrastructure.”

Andrew Whittaker, the outgoing Chairman of the Guernsey Investment Fund Association, said the past 12 months had reinforced Guernsey’s preeminent position in the private equity space.

“The continued presence of these market-leading funds in Guernsey demonstrates its attractiveness to truly global investors, as a stable, well-regulated and tax-transparent place to conduct business as the world goes through a period of unprecedented change,” said Mr Whittaker.

“The continued presence of these market-leading funds in Guernsey demonstrates its attractiveness to truly global investors, as a stable, well-regulated and tax-transparent place to conduct business as the world goes through a period of unprecedented change,” GIFA Chairman Andrew Whittaker

Indeed, Permira VI, which raised 7.5 billion euros, was the largest buyout fundraising in Europe during 2016. Carey Olsen Partner Tom Carey, who advised Permira on the launch of the fund, said: Guernsey has once again proved itself as the jurisdiction of choice for global fundraising. We were delighted to work with Permira and Fried Frank to deliver this successful closing of Permira VI and wish the fund every success with its investments.”

Guernsey’s private equity credentials, as well as its wider funds expertise, will be on show at the annual Guernsey Funds Forum in London on Thursday 11 May.

Internationally renowned hedge fund manager Crispin Odey will be the keynote speaker, while ITV News anchor Alastair Stewart OBE will once again moderate proceedings, including two industry panel sessions. The event is hosted by Guernsey Finance in conjunction with the Guernsey Investment Fund Association (GIFA).

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