Private equity continues to drive Jersey funds growth according to mid-year figures

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Sustained buoyant private equity activity continued to drive growth in Jersey’s investment funds sector as the total value of fund assets administered in the jurisdiction grew by GBP26.3 billion to stand at a new record level of GBP436.3 billion at the mid-year point, according to new industry data.

The latest quarterly figures for Jersey’s finance industry, collated by the Jersey Financial Services Commission (JFSC) and published by Jersey Finance for the period ending 30 June 2021, show that the value of total funds business booked in Jersey grew by 15 per cent over the first half of 2021.

In particular, the figures show that funds sector performance has been driven by private equity, which has grown by 24 per cent over the half year to stand at GBP203.6 billion. Combined, the alternative asset classes, including private equity, venture capital, hedge, real estate, infrastructure and debt funds, now account for 89 per cent of all funds business in Jersey.

In addition, the number of registered Jersey Private Funds (JPF), a structure designed for small groups of sophisticated and professional investors, grew by more than 50 over the six-month period to reach 456 (up 13 per cent). JPFs hold total Assets Under Management of GBP78 billion – these are not included in the headline quarterly data.

Meanwhile, the figures also show that deposits held in Jersey banking institutions midway through 2021 stood at GBP127.2 billion, down slightly (8 per cent) on December 2020. This was influenced by currency movements and global market volatility, with more than half (53 per cent) of deposits in Jersey being held in foreign currencies.

Corporate activity, meanwhile, remained strong over the six months, with a high number of company incorporations in the latest quarter (722) and the total number of live companies on the register standing at the highest level for more than a decade (33,948).

Jersey Finance Deputy CEO, Amy Bryant, says: “These latest quarterly figures reinforce some important points. First, the fact that corporate activity has remained strong and our banking sector has been resilient despite significant currency movements in an uncertain environment, underlines the robust nature of our industry.

“In addition, the fact that our investment funds sector has shown such impressive and sustained growth – in particular in the private equity and alternatives space – highlights our strengths as a centre focused on putting significant and high quality institutional and private capital to work around the world. Investors and managers clearly recognise Jersey as an IFC that offers specialist alternative fund expertise. That is important not just for Jersey but for global economies as we all look to rebuild in a sustainable way.”

Tim Morgan, Chair of the Jersey Funds Association, adds: “These are once again really positive figures underlining Jersey’s reputation as a specialist funds centre. We work tirelessly to maintain the perfect ecosystem for alternative funds - an ecosystem that is straightforward, well-regulated, effective, flexible and driven by genuine expertise - and those efforts are reflected in the ongoing growth we are seeing in the alternative asset classes, particularly private equity. That the JPF continues to grow its appeal across the range of investors from institutional investors through to family offices is also very welcome and demonstrates our ability to innovate to meet the range of needs across the market.”

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