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By Heather MacCallum (pictured) and Robert Kirkby – Over the last couple of years, there have been dramatic changes to the landscape we all operate within and the forthcoming years look like just as changeable. With such uncertainty on the horizon, how is it possible to determine operational strategy and deal with those thorny issues: Where should I domicile the fund? What are the new opportunities?
The European Union is on the brink of introducing the revolutionary Alternative Investment Fund Managers Directive (‘AIFMD’). The US Securities and Exchange Commission and the International Organisation of Securities Commissions are continuing to amend
Fund formations are few and far between at the moment, but it is still possible to launch niche strategies such as clean energy, high-tech and infrastructure.
These types of funds require specific expertise to set up, says Jane Pearce (pictured), a partner at the Ogier Group, which provides advice on all aspects of Jersey, BVI, Cayman, and Guernsey law and includes Ogier Fiduciary Services, which specialises in the provision of full administration services for private equity, real estate, infrastructure and mezzanine funds.
Pearce says, “It involves the same legal housing as many other funds, but VC-type funds contain very different
Jersey has been a significant fund services jurisdiction since the 1960s, but the ground is shifting now more than at any time over the intervening decades.
Not only is the global private equity industry a wounded beast in the aftermath of the financial crisis, but Jersey – already called upon to defend its reputation to an international audience time and again – has faced uncertainty about its future attractiveness to European managers and investors as European Union leaders and legislators wrangle over the eventual form of the proposed Alternative Investment Fund Managers directive (see page 9).
Jersey is widely regarded
With USD Libor at historical lows, Libor floors have become the norm with 95 per cent of loans including floors with ranges of 1.25 per cent to 3.00 per cent, according to Debtwire’s leveraged loan report.
During the first half of 2010 Debtwire North America covered 133 leverage loans issued by 112 companies.
Debtwire Europe covered 46 new loans issued by 20 companies totalling just under EUR11.3bn, 18 per cent ahead of the volume in the first half of 2009.
LBO-driven issuance kicked off in the second quarter, totalling EUR4.9bn associated with 39 deals.
Nevertheless, secondary buy-outs and refinancing came
Fiduciary and business services firm ATC has opened an office in Shanghai, China.
All the necessary regulatory and licensing approvals have been received from the Chinese authorities.
ATC has previously serviced China-based clients via itsr Hong Kong office.
Following the opening in Shanghai, ATC will have 19 offices in 17 countries across Europe, the Caribbean and the Asia Pacific region.
The new office will be multi-disciplinary, supporting corporate and institutional clients on both inbound and outbound transactions.
“The continued success and growth of our Asia practice, and the huge significance of China in the world economy, have made on-the-ground capabilities
Nearly half of respondents believe that the number of private equity houses will fall significantly over the next two years, according to a survey of 102 senior executives at 67 small/mid-market private equity houses by Smith & Williamson, the accountancy and financial services firm.
However, almost three-quarters of those surveyed are confident about the outlook for their own fund for the next year, suggesting that their concern is for others in the community.
Additionally, two-thirds of respondents believe more private equity-backed businesses will breach banking covenants in the year ahead even though the availability of debt finance has improved somewhat
China’s commercial banks are entering the emerging sectors via partnerships with private equity institutions.
This August, Beijing-based China Minsheng Banking established a partnership with DE Shaw Group, an institution engaged in energy investment.
Both sides agreed to cooperate in the field of RMB private equity investment and Minsheng Bank said that it would raise fund for the private equity partner from customers of its private banking service.
Another lender, China Construction Bank, is setting up a medical health industry fund, the first one of its kind in China’s domestic market. Private banking customers are expected to make a direct investment
The Alternative Investment Management Association says there has been considerable progress on the content of the Alternative Investment Fund Managers Directive following the compromise reached yesterday by EU ministers.
Aima had previously expressed grave reservations about some of the directive’s content. It thought there were many provisions that would have negatively impacted both the alternative asset management industry globally and also European investors.
Andrew Baker, chief executive of Aima, says the text of the directive that has now been agreed by European finance ministers is a considerable improvement not only for its members but in terms of its impact on
The fund managed by BNP Paribas Clean Energy Partners GP has achieved financial closure on a EUR93.5m senior loan facility for the construction by Megasol of a 30 MW solar photovoltaic power plant in Montalto di Castro, Italy.
The loan facility, funded by a consortium comprising Deutsche Bank, Rabobank and Centrobanca, is to be provided in two stages: the first construction phase, recently begun and due to become operational in 2010, and the second phase, due to be operating in the first quarter of 2011.
"This project continues our strategy of creating a high quality portfolio of assets in
Guernsey’s fund servicing industry fell by less than four per cent to reach USD278.7bn (GBP186.3bn) at the end of June 2010, with the total number of funds and sub-funds standing at 1,949, according to Lipper.
Guernsey’s fund servicing industry fell by less than four per cent to reach USD278.7bn (GBP186.3bn) at the end of June 2010, with the total number of funds and sub-funds standing at 1,949, according to Lipper.
Encouragingly, non-domiciled funds serviced in Guernsey rose again to reach USD42.3bn (GBP28.3bn).
For fund administration services of both domiciled and non-domiciled funds, Northern Trust is the largest administrator by
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