Jersey’s private placement regime continues to find favour with alt managers in lead up to Brexit
The number of alternative fund managers choosing to future-proof their EU-focused funds through Jersey continued to grow in the first six months of 2018, according to the latest figures from Jersey’s financial regulator.
Data from the Jersey Financial Services Commission (JFSC) for the period ending 30 June 2018 shows that the number of Jersey-registered managers opting to market into EU Member States through national private placement regimes (NPPR) under the Alternative Investment Fund Managers Directive (AIFMD) rose 8 per cent between January and June 2018, and 23 per cent year-on-year to stand at 161.
Meanwhile, the total number of Jersey alternative investment funds being marketed into the EU through NPPR also increased to stand at 306, representing a 5 per cent increase on the December 2017 figure and an 11 per cent rise since June 2017.
Geoff Cook (pictured), CEO, Jersey Finance, says: “Brexit ‘deadline day’ is now less than a year away and it’s looking increasingly like EU market access will prove to be a key challenge for UK fund managers. 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.
“These are strong figures for the first half of 2018 and a vote of confidence in Jersey as a future-proof jurisdiction from the alternative management community. We fully anticipate this figure will continue to rise as we approach Brexit.”
Meanwhile, the JFSC has also reported that, as at 30 June 2018, they granted authorisation to 128 Jersey Private Funds (JPF), a fast-track regime that was launched in April 2017 to cater for limited numbers of professional and institutional investors. This figure represents an increase of 190 per cent since August 2017, with the 100th JPF having been registered in March this year.
Mike Byrne, Chairman, Jersey Funds Association, adds: “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 per cent 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.”