Guernsey is a “reliable and trusted market” for funds

06 November 2018

Guernsey is recognised as a “reliable and trusted market” in a global funds landscape where private equity and venture capital funds hold a prime position.

New findings from the independent fund research company Monterey Insight, in its 2018 Guernsey fund report, reveal that fund assets serviced in Guernsey stood at $399.3 billion at the end of June 2018, up 0.7% compared to 2017.

The total number of serviced schemes increased to 1,077 and the number of sub-funds reached 1,323 during the year, up from 1,018 and 1,363 respectively.

Karine Pacary, Managing Director of Monterey Insight, said the findings demonstrated the continuing stability of the Guernsey funds market.

“Guernsey has managed to attract 21 new promoters to establish their funds in the island and combined with the existing promoters, over 140 new serviced funds and sub-funds were launched in the same period, accounting for $19.3 billion,” she said. “In a landscape where private equity and venture capital funds hold a prime position, Guernsey continue to be recognised as a reliable and trusted market.”

The report also reveals the market share of all service providers in the island’s funds industry.

Northern Trust were largest administrator, custodian and transfer agent by total net assets.

“Through our collaboration with other professionals in the island, we continue to bring new regulated products and inventive asset servicing solutions to the market,” said Dave Sauvarin, Head of Guernsey at Northern Trust.

PwC is auditor of the greatest number of funds, while KPMG leads rankings by assets. Both firms said that they had belief in the island’s continuing excellence as a funds centre.

“Guernsey has a thriving investment management industry and is recognised as a global centre of excellence for private equity, providing appropriate structures, a robust regulatory environment, and first-class professional services,” said Roland Mills, Partner at PwC Channel Islands and Asset Management Leader for the firm in Guernsey.

Neale Jehan, KPMG CI Managing Partner, added: “We believe Guernsey is currently well-positioned within the global fund industry and have great confidence in its future growth. We are seeing increased interest in the island from new promoters as an innovative location for management, domiciliation and servicing of funds in the alternative asset market.”

“Guernsey has managed to attract 21 new promoters to establish their funds in the island and combined with the existing promoters, over 140 new serviced funds and sub-funds were launched in the same period, accounting for $19.3 billion. In a landscape where private equity and venture capital funds hold a prime position, Guernsey continue to be recognised as a reliable and trusted market.”
Monterey Insight Managing Director Karine Pacary

Carey Olsen was top ranked law firm both by number of funds and market share of assets.

“An increase in AUM and the number of funds in Guernsey shows that the funds sector remains extremely buoyant, while the introduction of regimes such as the Guernsey Private Investment Fund, which has been particularly well received since its launch two years ago, and the Guernsey Green Fund, introduced earlier this year as the world's first regulated green fund product, shows that Guernsey continues to innovate in order to stay ahead of the pack jurisdictionally,” said Ben Morgan, Partner and Head of Carey Olsen’s corporate and finance group in Guernsey.

The report also revealed that the largest promoter of funds serviced in Guernsey is Apax Partners with $40.4 billion, with Partners Group second at $21.1 billion and Permira third at $15.3 billion.

Some 95 funds and sub-funds domiciled in Guernsey were launched during the year, accounting for $15.5 billion in assets, of which 58 sub-funds were private equities with a total net asset of $12.1 billion, representing 78.1% in assets of the newly-launched product.

For serviced funds, private equities funds were the most popular product, accounting for $259.2 billion compared with $250.3 billion in 2017, a 3.6% increase.

Private equities accounted for $15.1 billion out of $19.3 billion in newly-launched serviced funds.