Alternative fund managers future-proof before Brexit
BREXIT has been encouraging alternative fund managers to future-proof their EU-focused funds through Jersey.
The Jersey Financial Services Commission said that until the end of June, the number of Jersey-registered managers opting to market into EU member states through national private placement regimes under the Alternative Investment Fund Managers Directive rose 8% between January and June 2018 and 23% year on year to stand at 161.
Meanwhile, the total number of Jersey alternative investment funds being marketed into the EU through national private placement regimes also increased, to stand at 306, representing a 5% increase on the December 2017 figure and an 11% rise since June 2017.
Commenting on the figures, Geoff Cook, CEO, Jersey Finance, said: ‘Our message is clear – Jersey is ready to play a supportive role in enabling non-EU, including UK, managers to continue to market their funds to EU investors through our tried-and-tested private placement regime.’
Meanwhile the JFSC has also reported that they granted authorisation to 128 Jersey private funds, a fast-track regime that was launched only in April of last year to cater for limited numbers of professional and institutional investors.
Mike Byrne, chairman of the Jersey Funds Association, said: ‘The overall indications are that Jersey is continuing to find favour right across the alternatives spectrum, spanning private equity, real estate, hedge, debt and infrastructure. Alternative funds business in Jersey grew 18% over 2017, and we absolutely see this dynamic continuing through 2018.
The impressive growth in our Jersey private fund product in particular is evidence of the jurisdiction’s innovative approach to supporting institutional investors, with the structure often being used for EU-focused funds.’