Guernsey Press

Investment fund ‘significant milestone’

THE creation of a multimillion-pound investment fund is a significant milestone for Guernsey’s economy, the heads of two States committees have said.

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(Picture by Peter Frankland, 20661570)

Policy & Resources, which has delegated authority over the States of Guernsey’s Investment Reserve, has agreed to invest up to £25m. into the Guernsey Investment Fund, which will be used to help start-up and existing companies with their business ventures.

Initially the money will be available to technology and innovation companies, but the intention is to broaden that to property and infrastructure.

Investment fund manager Ravenscroft has so far secured additional private sector funding from MXC Guernsey Ltd, which has said it will contribute up to £5m., and Pula Investments, which has pledged an unspecified amount.

P&R president Gavin St Pier said the launch of the fund ‘marks an exciting day for all those involved in business.

‘We are determined to stimulate growth and we are committed to supporting business innovation,’ he said.

‘Our expectation as primary investor into the fund is that it will achieve a significant return on our investment reserves for taxpayers and serve as an economic enabler.

‘We have worked with Ravenscroft to set up the fund to operate at arm’s length of government, managed by professionals with an independent three-person board appointed to have overall responsibility for investment decisions.

‘Neither politicians nor civil servants will be involved in making investment decisions.

‘This is something I have been talking about for some time, so I am pleased that it has finally come to fruition.

‘This significant investment from government and other investors in the Bailiwick serves as a demonstration of the confidence that exists in our economy.

‘The fund represented a good investment opportunity for government reserves but has the dual benefit of supporting business, jobs and the wider economy.’

Economic Development president Charles Parkinson said the investment was significant and displayed high levels of confidence in the island’s economic outlook.

‘A well-managed investment fund has significant potential to help grow the economy. Our need to diversify is well-understood and the Guernsey Investment Fund can be a key enabler to meet that objective,’ he said.

‘We cannot stand still, we must innovate and we must support those with the ideas, but not the necessary funds, that can benefit the Bailiwick for years to come.’

Deputy St Pier said it was something the wider public should be excited about too.

‘We often say that “Guernsey is open for business”. This is an unequivocal example of us now walking the walk,’ he said.