Private Equity Administrators wants to share with you the reasons why Guernsey continues to be the favoured jurisdiction for Private Equity Funds

During a recent article in Hedge Week, Guernsey Finance’s CEO, Fiona Le Poidevin provided some insight into the latest growth figures released by the Guernsey Financial Services Commission (GFSC), signifying a major vote in confidence by the funds’ industry on how Guernsey is approaching AIFMD.

“Latest figures from Guernsey’s financial services regulator, the GFSC, show that it approved 30 new investment funds during the fourth quarter of last year, amid a total of 103 additions during 2013”.

Private Equity Administrators (PEA) has put together the following summary to reinforce Guernsey as the top jurisdiction of choice for Private Equity Fund Managers amid the changing face of regulation.

AIFMD Dual Regulatory Regime

Guernsey Benefit

Managers with no connection to the EU – Existing regime available, completely free  from AIFMD requirements Significantly reduced operational and cost benefits. No need to comply with various organisational, operational and transparency obligations of the AIFMD
Managers and Funds who want access to Europe – Guernsey as a Third Country – Managers are able to use NPP regimes and Guernsey Funds are able to market to qualified investors in these European Countries Expected to remain in place until at least 2018. The GFSC has signed bilateral co-operation agreements   with 27 Countries from the EU and EEA
Non-EU AIFMs – Full passporting regime expected from July 2015 Guernsey AIFMs are able to market AIFs on a pan-European basis with a single authorisation

Optionality

Guernsey Benefit

Fund Managers exclusively marketing to Europe would have an AIFMD fully compliant platform Does not have to be based in Europe; Guernsey platforms may be used utilising the fully equivalent AIFMD opt-in route to market
Relevance of pan-European marketing model to investor base Guernsey structures available to greatly reduce the obligations and costs that come with the AIFMD and   UCITS regulation
EU and Non-EU investor base Structures available to hive off non-EU business into parallel or feeder funds where AIFMD compliance is   neither required or necessary
Managers with a mainland European platform will have to comply fully with AIFMD even if there were a  large proportion of non-EU investors European mainland platforms do not offer the ability to separate the reporting obligations away from non-EU Investors. Guernsey platforms allow you to do this providing significantly reduced operational and cost expenditure

Substance

Guernsey Benefit

Not falling foul of letter box entity provisions – if required, ensuring the management entity is   established outside the EU, by having enough substance in the domicile of their fund if they opt for it to be self-managed Guernsey has significant substance to its existing fund structures. PE houses such as Apax, BC Partners, Mid Europa, Permira, Procuritas and   Terrafirma to name but a few have Guernsey domiciled funds, offices and staff in Guernsey
Range of Administrators There are nearly 50 administration houses in Guernsey offering specialist independent   administration
Experienced pool of non-executive directors There are over 200 experienced non-executive directors on Guernsey, with a range of specialisations and industry/ commercial expertise
Depositary Services Depositary services are offered by a range of global banks and independent administration houses to service the needs of Private Equity and Real Estate houses

 

Should you wish to understand more about AIFMD and how Guernsey can support your Fund, feel free to call James in Guernsey or Peter in Denmark if you would be interested in hearing more:

James Orrick / +44 1481 730988 / jo@peadm.com

Peter Toyberg / +45 70 20 40 61 / pt@peadm.com

Further reading: Carey Olsen A Guide to Funds and Private Equity In Guernsey

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