Guernsey continues to grow its reputation as the jurisdiction choice for private equity. The Island has recently been described as:
"the jurisdiction of choice for private equity"
Bridget Barker, Macfarlanes, London
"a terrific place in which to do business"
Jon Moulton, Founder and Managing Partner of Alchemy Partners, who now lives in Guernsey
In addition, leading private equity firm Terra Firma has established an operation in the Island.
These developments come on the back of Guernsey experiencing high levels of growth in private equity funds over a sustained period of time. Statistics from the Guernsey Financial Services Commission (GFSC) show that the total value of private equity funds domiciled in Guernsey trebled between the end of 2002 and the end of 2006. By the end of December 2007 private equity funds domiciled in Guernsey had a total value of £34bn – a rise of £5.5bn (19%) during the previous quarter and £13.6bn (66%) year on year.
Guernsey listed fund transaction KKR Private Equity Investors LP, from Kohlberg Kravis Roberts & Co, raised more than US$5bn before being launched on the Euronext Amsterdam. It subsequently won 'Equity Deal of the Year' at last year's International Financial Law Review (IFLR) European Awards.
Following from KKR there have also been other notable Guernsey private equity funds, including:
- The largest central European buyout fund – in
excess of €1bn – Mid Europa Fund III
- The closed-ended Baring Vostok Private Equity Fund IV
- One local law firm advised on both Valdivia Private
Equity Fund and Energy Ventures III
- Carlyle Capital Corporation was listed on Euronext
Amsterdam, raising a total of US$300mn
- AA Development Capital India Fund – a joint
venture between Ashmore and Alchemy
- The closed-ended Royalton Capital Investors II LP was
established this October
- EQT V Limited (Clifford Chance) raised €4.25bn
– focused on northern and central Europe
For more information about Guernsey's finance industry please visit www.guernseyfinance.com.
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