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First Guernsey cannabis healthcare fund launched

25 September 2020

A new investment fund dedicated to the cannabinoid healthcare market has been launched in Guernsey.  

Verdite Capital Fund I, promoted by Chrystal Capital Partners, is the first to have been approved by the Guernsey Financial Services Commission. The fund has been described as Europe’s largest dedicated fund in the sector, is reported to be looking to raise £100 million in a first fundraising and to double that in a later second raise.  

The fund will seek returns through a diversified portfolio in this non-correlated rapidly growing sector. It will invest in companies across the value chain of the legal cannabinoid market globally. 

Chrystal Capital Partners considered five leading international finance centres for the fund’s domicile and chose Guernsey. It said it favoured the island due to its stable, secure and well-regulated investment and finance industry.

"Investment managers are increasingly being drawn to Guernsey because of the quality and expertise in the island across legal, tax, audit and administration," said Joanna Duquemin Nicolle, Chief Executive of Elysium Fund Management, the fund’s Guernsey-based administrator.  

"Guernsey is white-listed by the OECD and the EU and the flexibility and ease of doing business, combined with the high standards of regulation and governance, gives investors the comfort to put their money into Guernsey funds."

The regulatory approval for this innovative fund also demonstrates that Guernsey is very much open for business despite the global coronavirus pandemic, with the island is operating in near-normality.

"Investment managers are increasingly being drawn to Guernsey because of the quality and expertise in the island across legal, tax, audit and administration. Guernsey is white-listed by the OECD and the EU and the flexibility and ease of doing business, combined with the high standards of regulation and governance, gives investors the comfort to put their money into Guernsey funds."
Joanna Duquemin Nicolle, Chief Executive, Elysium Fund Management

Verdite is a Guernsey-registered closed-ended collective investment scheme, structured as a limited partnership. Elysium has specialist expertise of providing administration, accounting and company secretary services to alternative funds and managers across private equity, infrastructure, property, specialist debt, special situations and sustainable finance. Walkers acted as Guernsey legal counsel for the fund launch.  

"Walkers were delighted to have assisted our client in launching this important new fund, which is Guernsey’s first healthcare cannabinoid fund," said Kate Storey, Partner at the law firm.  

"The regulatory approval for the fund demonstrates that Guernsey is a leading international financial centre which can provide innovative solutions for novel investment products in an internationally-recognised and well-regulated jurisdiction."

The GFSC announced in June it would be willing to consider applications for registration or authorisation of a collective investment scheme which invested in the cannabis-related investments for the pharmaceutical and medical market.

"The regulatory approval for the fund demonstrates that Guernsey is a leading international financial centre which can provide innovative solutions for novel investment products in an internationally-recognised and well-regulated jurisdiction."
Kate Storey, Partner, Walkers

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