The latest developments within Guernsey's funds industry show that the Island continues to be a leading jurisdiction for private equity, according to Peter Niven, Chief Executive of Guernsey Finance.
New figures show that in the second quarter of the year the value of private equity funds in the Island grew by nearly £1bn (2.5%) to reach £36.2bn. This is despite the difficult market conditions that have seen amounts raised by private equity funds across Europe fall by some 10% this year.
It has also been announced that the management of Guernsey-based IPES – backed by private equity firm RJD Partners – is buying out the provider of dedicated private equity administration services for in excess of £20m.
In addition, another Guernsey-based private equity administrator, Augentius, has been celebrating 400% growth in assets under administration since a management buyout two years ago.
"These developments are yet further evidence that Guernsey continues to be a leading jurisdiction for private equity," said Mr Niven.
"Fund promoters and sponsors recognise that Guernsey's experience in this asset class has helped build a broad industry with specialist expertise and including administrators providing bespoke IT solutions. They have also been attracted by the introduction of Qualifying Investor Funds (QIFs) – a self-certification regime targeting experienced investors – and the launch of our 'fast track' registered funds regime.
"However, it could be argued that the listing of the US$5bn Guernsey limited partnership KKR Private Equity Investors LP on the Amsterdam Euronext was so innovative that it has been the largest single contributor to the Island's recent success in the asset class. It highlighted that Guernsey was one of the few jurisdictions from where funds wishing to list on Euronext do not need to obtain a licence in the Netherlands because the Dutch AFM has ruled that there is already adequate 'home' supervision. It also put Guernsey on the map internationally and particularly in the US, something from which the Island has never looked back as it has become the jurisdiction of choice for private equity."
This success is illustrated by the fact that Terra Firma and Permira have recently both established their own operations in the Island.
Guernsey's on-going appeal and the future of the private equity industry in general will come under the microscope during a session 'Private Equity – looking forward' chaired by Permira's Veronica Eng at the Guernsey Funds Forum. It takes place at the Queen Elizabeth II Conference Centre, Westminster, London, on Tuesday 7 October.
That will be followed the next evening by a Guernsey Private Equity Masterclass at the Caledonian Hilton Hotel, Princes Street, Edinburgh. Keynote speaker Alastair Maclean, Partner at Maclay Murray and Spens LLP, will be joined by a panel of Guernsey industry experts who will explain more about private equity in the Island.
For more information about Guernsey's finance industry please visit www.guernseyfinance.com.
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