Snapshot: why private equity and alternatives are thriving in Jersey

Recently published quarterly statistics for the period ending 30 June 2021 show that the value of regulated funds under administration in Jersey grew by 15% to £436.3 billion in the first half of 2021.

Excluded from this data are the total assets under management in qualifying segregated managed accounts which stood at £1.3 billion and £78 billion of assets under management attributed to Jersey Private Funds (the most popular structure for alternative assets), which grew by 13% over the period.

A key driver for this growth is private equity, the asset class having enjoyed growth of 24% during the period to stand at £203.6 billion. Indeed, private equity together with venture capital, hedge funds, real estate, infrastructure and debt funds, account for 89% of total funds serviced in Jersey.

The figures are encouraging in what has, so far, been another particularly busy year for the funds industry in Jersey.  It is no surprise that private equity continues to thrive as fund managers continue to favour jurisdictions such as Jersey which provide real substance, are regulated in a proportionate manner and keep pace with international standards for combating financial crime as well as global initiatives such as ESG and sustainability.

Investment funds partner Emily Haithwaite said, "As an industry we are constantly considering how the regulation of investment funds and relevant legislation can be improved. One of the advantages of a small jurisdiction is that we can react quickly to changes in the global regulatory environment in order to keep our regime current and ensure that Jersey continues to provide managers with a very compelling proposition indeed. 

"The steady increase in the number of managers establishing a physical presence in the island is further testament to the work which is carried out behind the scenes by stakeholders, who really are the backbone of the funds industry.  These statistics are an endorsement of this work."

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Disclaimer

This client briefing has been prepared for clients and professional associates of Ogier. The information and expressions of opinion which it contains are not intended to be a comprehensive study or to provide legal advice and should not be treated as a substitute for specific advice concerning individual situations.

Regulatory information can be found under Legal Notice