New fund launches are a vital part of Guernsey’s private equity industry, so industry participants have welcomed the return of fund launches and fundraising in the second half of this year. However, launch activity in Guernsey has been held back to some extent by delays to the proposed AIFM directive. The structures that are proceeding appear to be driven by highly selective investors, who are demanding predominantly niche strategies that should outperform even in choppy markets and unpromising economic environments.   Paul Wilkes (pictured), a senior associate at Collas Day, a Guernsey-based law firm, says: “Fund launches are starting to

Guernsey differs from many other jurisdictions and has a number of advantages to offer to funds and their service providers, according to Babbé, the law firm. “Guernsey is a well-established jurisdiction with a positive regulatory environment that seeks to accommodate business innovation,” says Stuart Tyler (pictured), a partner at Babbé.   In addition it has a significant industry presence to support its finance industry, coupled with strong interaction with onshore jurisdictions. Its recently amended commercial laws in relation to corporate bodies, innovation in respect of protected cell companies and incorporated cell companies, and updated regulatory regime for collective investment schemes

These are interesting times for the private equity industry. Compared with the past, there is no strongly-defined trend, either in a positive or negative direction. But for well-managed, innovative and well-resourced funds and their service providers, there is potentially a wealth of opportunities. Ongoing difficulties surround the banking sector and the high levels of leverage that still exist within some deals structured at the height of the private equity boom. But as Brett Allen (pictured), Head of BNP Paribas Securities Services’ product team in the Channel Islands points out, some market participants are in a strong position to benefit in

By Phil Davis – Guernsey’s reputation for private equity expertise has developed over the course of more than a decade, a period during which the island has benefited both from the rapid growth of the industry and far-sighted decisions of its government and regulator that have encouraged the sector’s development.  But could the jurisdiction’s growth be restricted in the future by the rising cost and difficulty of doing business offshore and by the possibility of tax rises? After all, personal and corporate tax advantages played an important role in attracting funds and service providers to Guernsey in the first place.