Guernsey funds stats reflect private equity boom

01 February 2018

Written by Ben Morgan

Ben Morgan, Partner and Head of the Corporate and Finance Group at Carey Olsen in Guernsey, reflects on latest statistics which showed £20 billion growth in the total value of funds business in the island over 12 months to September 2017

Some of the world's biggest private equity managers launched several multi-billion pound funds in Guernsey in 2016. This is clearly coming through in the closed-ended fund statistics for 2017 which has enjoyed almost double-digit growth (up £13.7 billion over the 12 months to the end of September, nearly 9%).

For the closed ended fund sector Guernsey has continued to dominate various sectors of the alternative fund market. Guernsey continues to be the number one jurisdiction in particular for the large buyout houses. It also remains the number one jurisdiction behind the UK for London Stock Exchange listings. Given the massively oversubscribed fund raisings enjoyed by so many Guernsey alternative investment fund managers over the last few years, it is quite clear that the NPPR route for third country managers is working. The EU AIFM Directive has not held Guernsey managers back. 

Recent enquiries would suggest that 2018 will see considerable interest from managers dealing with Brexit issues and other managers looking to put down roots in Guernsey.

Speed to market is a key differentiator in Guernsey, with private investment funds (PIFs) being approved by the GFSC within one business day. Guernsey maintains a proportionate, flexible and competitive funds regulatory regime, with appropriate investor protection recognised internationally by other regulators. 

Guernsey maintains a proportionate, flexible and competitive funds regulatory regime, with appropriate investor protection recognised internationally by other regulators. 
Ben Morgan, Partner and Head of the Corporate and Finance Group at Carey Olsen

What also comes through from the statistics is the increase in non-Guernsey schemes – funds domiciled in other jurisdictions are choosing a Guernsey administrator, manager or custodian over service providers in the fund's domicile. This trend should continue with managers in Guernsey also being appointed as sub-managers to AIFs and UCITS, given the substantially lower regulatory and cost burden for management companies domiciled here.

 

Download Find a related practitioner