Business panel: The benefits of private equity
Private Equity: What are the benefits of launching a private equity fund in Guernsey?
Louise Manklow, client director at Estera Guernsey, replies:
Guernsey has been committed to private equity since the 1980s. Since then, the island’s reputation in the asset class has grown, with some of the world’s largest private equity managers recently launching multi-billion-pound funds in Guernsey. Statistics show a near-£14bn growth in Guernsey funds over the 12 months to the end of September 2017 and, as at 31 December 2017, 58% of the closed-ended schemes in Guernsey were private equity.
Guernsey is politically stable and geographically well placed for key European markets. Its dual regulatory regime makes it possible to distribute private equity funds to both EU and non-EU countries, and it is one of only five non-EU jurisdictions with an unqualified positive assessment by the European Securities and Markets Association, allowing funds to freely passport into the EU.
The island has been endorsed by the International Monetary Fund and the Financial Action Task Force and is on the G20 ‘white list’ as having substantially implemented internationally-agreed tax standards.
The Guernsey Financial Services Commission is known for its pragmatism.
All Guernsey schemes remain regulated but fast-track options allow for the speedy launch of funds – managers can launch private investment funds and receive GFSC approval within 24 hours where appropriate.
The regulator is consulting industry in relation to the Guernsey Green Fund to create a structure which will assure investors that investments are being used for bona fide environmental purposes.
Guernsey-based promoters enjoy access to world-class professionals, including Big Four accountants, first-class international banks, law firms and administrators, and a plentiful supply of non-executive directors. Furthermore, investment managers seeking to raise capital on international stock exchanges can benefit from the depth of expertise in global offerings found in Guernsey’s fund administration sector.
