Guernsey is a jurisdiction with a proven track record in private equity funds.
With typical private equity fund life cycles of between 10-12 years, the fact that Guernsey has experience dating back to the early 1980s when private equity funds were in their infancy is both reassuring and a strong credential for fund promoters looking for a jurisdiction where private equity works.
Promoters of Guernsey funds include:
- BC Partners
- Terra Firma
- Coller Capital
Growth in Private Equity
The net asset value of private equity funds in Guernsey has grown dramatically over the past 5 years, increasing 57% during 2006.
Pragmatic regulation - The Guernsey Financial Services Commission promotes a pragmatic regulatory environment for private equity funds.
Fast track capability - Self-certification Qualifying Investor Funds (QIFs) enable very short authorisation times and a parallel registered fund regime is being introduced. The streamlined consent process for registered closed-ended funds came into effect on 1 February 2007.
Competitive tax environment - Private equity funds are structured so that no liability to tax will arise in Guernsey. No VAT is payable in Guernsey.
IT solutions - Many administrators have software systems developed specifically for private equity funds, providing effective solutions for both complex and simple private equity fund structures.Legislation - Guernsey has a modern limited partnership law and company law. A Guernsey limited partnership can elect to have a legal personality.
Expertise - With more than 20 years of experience in private equity funds Guernsey has a pool of dedicated specialists.
Experienced administrators - As well as fund managers and custodians, Guernsey has more than 45 administrators (many of them international operations), with a significant number dedicated to the provision of private equity administration services.
Accounting services - The big four all have large offices on the Island, in addition to other accounting practices.
Legal expertise - All of the principal local law firms have specialists with private equity expertise.
For more information about Guernsey's finance industry please visit www.guernseyfinance.com.
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