Guernsey: In High Demand – Guernsey’s Funds Industry

Last Updated: 10 June 2014
Article by Vignesh Vijayakumar

Most Read Contributor in Guernsey, September 2018

Vignesh Vijayakumar, senior manager of corporate and institutional services at RBC Wealth Management, discusses the main trends in the funds industry in Guernsey.

HFMWeek (HFM): What are the main trends you are currently seeing in the market in Guernsey?

Vignesh Vijayakumar (VV): We generally see a positive uptrend in the private equity sector, but an interesting shift of late has been the appetite for separate managed account structures. Investors who are contemplating establishing these managed account structures are normally looking to deploy substantial commitments to asset managers and accordingly these are highly customised based on the individual requirements. While we see that fund raising in general has been quite challenging, those asset managers with an established track record are able to successfully launch funds with a much shorter lead time. Despite this, it is imperative that the asset managers allow themselves plenty of time, given that investors are placing a greater emphasis on due diligence matters. Another interesting trend we are seeing at the moment is funds raised to invest in a specific investment, which could be in both a traditional private equity strategy as well as in the real estate/infrastructure segment.

HFM: What sort of activity has Guernsey seen recently in the private equity segment?

VV: We have seen interest returning in all the major private equity strategies, with appetite slowly returning to the buy out market. We are also seeing increased interest in credit funds, and some asset managers have moved from a blind pool capital approach to operating on a deal-by-deal basis due to investor preference.

HFM: What makes Guernsey's private equity market an attractive location to asset managers?

VV: Guernsey has a very well-established regulatory framework which demonstrates a good mix of flexibility and pragmatism. It boasts a highly-regarded financial regime that has attracted asset managers and investors across the globe looking to build on their existing fund relationships. Asset managers are particularly appreciative of the fast track regulatory options available in Guernsey.

HFM: What services does RBC offer to private equity funds in Guernsey?

VV: We provide a full suite of services necessary for asset managers looking to establish fund structures in Guernsey. Most private equity fund structures are established as closed-ended limited partnerships with a Guernsey company acting as the general partner. There are also carried interest and co-investment structures oft en included in the relationship.

Our services include administration and fiduciary services to the fund, general partner and the related carried interest structures along with custody and banking services necessary to fund structures. We offer a highly customised approach and work with all types of asset managers - be it a start-up manager or an established asset manager raising their follow-on funds - and can assist right from the inception stage working with the legal advisers and other key stakeholders.

Aside from the core fund administration service, our institutional reach means that we are able to provide more value-added services such as bridge financing options, wealth management solutions to the key investment professionals and other stakeholders with the asset manager, and also custody options when the portfolio companies decide to go for a listing. We work closely with colleagues in our capital markets division to fully leverage this institutional reach in order to provide the best value-added service to our clients.

HFM: What are the main trends you see in the administration sector in Guernsey?

VV: Private equity fund administration has always been a highly customised service offering for us and increasingly each client adopts a slightly different approach either with the fund structures, economic terms or investor reporting with more tailored capital account statements etc. Though managers have generally adopted the EVCA reporting guidelines, we are seeing many managers now considering some of the ILPA guidelines towards reporting. It is important that service providers are well-equipped to handle more complex fund structures and flexible reporting requirements for the asset managers. We are also seeing an increasing number of side letters with investors and often many of the side letter terms provide for an enhanced reporting frequency or additional information. We assist the asset managers in meeting the requirements and ensure that the fund complies with the obligations assumed in the side letters.

HFM: What are the typical challenges faced by fund managers when establishing a private equity fund?

VV: Be it a start-up asset manager or an asset manager with a track record, it is beneficial to engage key service providers from a very early stage of the discussions. It is important to discuss with the legal advisers establishing a well thought out fund structure with carried interest, co-investment and holding companies for the relevant investments. It is also important to consider the target investor market and adequately provide for any feeder structures, if necessary.

Aside from the structure aspect, there are challenges relating to the economic terms and particularly investors requesting preferential fee arrangements for seed capital. Investors are also often quite keen to understand the deal flow of the asset managers and seem to focus both on the investment and operational due diligence aspect prior to committing.

HFM: How does RBC help asset managers meet the requirements of the changing regulations such as FATCA and the AIFMD?

VV: There have been lots of regulatory changes within the asset management industry. We follow regulatory updates closely and work with legal advisers in all the jurisdictions to ensure that we remain well-positioned to assist our clients in meeting the relevant obligations. Our clients often look to us to guide them through the ever-changing regulatory landscape and being part of a larger institution puts us in a favourable position in having these conversations. We have dedicated teams looking at the regulatory changes and receive frequent updates about how the changes impact the industry.

HFM: What are your predictions for the market in Guernsey over the next year?

VV: Guernsey has always been an attractive domicile and this will continue to be the case. Private equity and real estate structures are quite popular and we anticipate increasing activity levels in the market. Guernsey's robust regulatory regime will continue to remain attractive for asset managers.

An original version of this article appeared in the HFMWeek Guernsey Report 2014, May 2014.

For more information about Guernsey's finance industry please visit

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

To print this article, all you need is to be registered on

Click to Login as an existing user or Register so you can print this article.

In association with
Related Topics
Related Articles
Up-coming Events Search
Font Size:
Mondaq on Twitter
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).
Email Address
Company Name
Confirm Password
Mondaq Topics -- Select your Interests
 Law Performance
 Law Practice
 Media & IT
 Real Estate
 Wealth Mgt
Asia Pacific
European Union
Latin America
Middle East
United States
Worldwide Updates
Registration (you must scroll down to set your data preferences)

Mondaq Ltd requires you to register and provide information that personally identifies you, including your content preferences, for three primary purposes (full details of Mondaq’s use of your personal data can be found in our Privacy and Cookies Notice):

  • To allow you to personalize the Mondaq websites you are visiting to show content ("Content") relevant to your interests.
  • To enable features such as password reminder, news alerts, email a colleague, and linking from Mondaq (and its affiliate sites) to your website.
  • To produce demographic feedback for our content providers ("Contributors") who contribute Content for free for your use.

Mondaq hopes that our registered users will support us in maintaining our free to view business model by consenting to our use of your personal data as described below.

Mondaq has a "free to view" business model. Our services are paid for by Contributors in exchange for Mondaq providing them with access to information about who accesses their content. Once personal data is transferred to our Contributors they become a data controller of this personal data. They use it to measure the response that their articles are receiving, as a form of market research. They may also use it to provide Mondaq users with information about their products and services.

Details of each Contributor to which your personal data will be transferred is clearly stated within the Content that you access. For full details of how this Contributor will use your personal data, you should review the Contributor’s own Privacy Notice.

Please indicate your preference below:

Yes, I am happy to support Mondaq in maintaining its free to view business model by agreeing to allow Mondaq to share my personal data with Contributors whose Content I access
No, I do not want Mondaq to share my personal data with Contributors

Also please let us know whether you are happy to receive communications promoting products and services offered by Mondaq:

Yes, I am happy to received promotional communications from Mondaq
No, please do not send me promotional communications from Mondaq
Terms & Conditions (the Website) is owned and managed by Mondaq Ltd (Mondaq). Mondaq grants you a non-exclusive, revocable licence to access the Website and associated services, such as the Mondaq News Alerts (Services), subject to and in consideration of your compliance with the following terms and conditions of use (Terms). Your use of the Website and/or Services constitutes your agreement to the Terms. Mondaq may terminate your use of the Website and Services if you are in breach of these Terms or if Mondaq decides to terminate the licence granted hereunder for any reason whatsoever.

Use of

To Use you must be: eighteen (18) years old or over; legally capable of entering into binding contracts; and not in any way prohibited by the applicable law to enter into these Terms in the jurisdiction which you are currently located.

You may use the Website as an unregistered user, however, you are required to register as a user if you wish to read the full text of the Content or to receive the Services.

You may not modify, publish, transmit, transfer or sell, reproduce, create derivative works from, distribute, perform, link, display, or in any way exploit any of the Content, in whole or in part, except as expressly permitted in these Terms or with the prior written consent of Mondaq. You may not use electronic or other means to extract details or information from the Content. Nor shall you extract information about users or Contributors in order to offer them any services or products.

In your use of the Website and/or Services you shall: comply with all applicable laws, regulations, directives and legislations which apply to your Use of the Website and/or Services in whatever country you are physically located including without limitation any and all consumer law, export control laws and regulations; provide to us true, correct and accurate information and promptly inform us in the event that any information that you have provided to us changes or becomes inaccurate; notify Mondaq immediately of any circumstances where you have reason to believe that any Intellectual Property Rights or any other rights of any third party may have been infringed; co-operate with reasonable security or other checks or requests for information made by Mondaq from time to time; and at all times be fully liable for the breach of any of these Terms by a third party using your login details to access the Website and/or Services

however, you shall not: do anything likely to impair, interfere with or damage or cause harm or distress to any persons, or the network; do anything that will infringe any Intellectual Property Rights or other rights of Mondaq or any third party; or use the Website, Services and/or Content otherwise than in accordance with these Terms; use any trade marks or service marks of Mondaq or the Contributors, or do anything which may be seen to take unfair advantage of the reputation and goodwill of Mondaq or the Contributors, or the Website, Services and/or Content.

Mondaq reserves the right, in its sole discretion, to take any action that it deems necessary and appropriate in the event it considers that there is a breach or threatened breach of the Terms.

Mondaq’s Rights and Obligations

Unless otherwise expressly set out to the contrary, nothing in these Terms shall serve to transfer from Mondaq to you, any Intellectual Property Rights owned by and/or licensed to Mondaq and all rights, title and interest in and to such Intellectual Property Rights will remain exclusively with Mondaq and/or its licensors.

Mondaq shall use its reasonable endeavours to make the Website and Services available to you at all times, but we cannot guarantee an uninterrupted and fault free service.

Mondaq reserves the right to make changes to the services and/or the Website or part thereof, from time to time, and we may add, remove, modify and/or vary any elements of features and functionalities of the Website or the services.

Mondaq also reserves the right from time to time to monitor your Use of the Website and/or services.


The Content is general information only. It is not intended to constitute legal advice or seek to be the complete and comprehensive statement of the law, nor is it intended to address your specific requirements or provide advice on which reliance should be placed. Mondaq and/or its Contributors and other suppliers make no representations about the suitability of the information contained in the Content for any purpose. All Content provided "as is" without warranty of any kind. Mondaq and/or its Contributors and other suppliers hereby exclude and disclaim all representations, warranties or guarantees with regard to the Content, including all implied warranties and conditions of merchantability, fitness for a particular purpose, title and non-infringement. To the maximum extent permitted by law, Mondaq expressly excludes all representations, warranties, obligations, and liabilities arising out of or in connection with all Content. In no event shall Mondaq and/or its respective suppliers be liable for any special, indirect or consequential damages or any damages whatsoever resulting from loss of use, data or profits, whether in an action of contract, negligence or other tortious action, arising out of or in connection with the use of the Content or performance of Mondaq’s Services.


Mondaq may alter or amend these Terms by amending them on the Website. By continuing to Use the Services and/or the Website after such amendment, you will be deemed to have accepted any amendment to these Terms.

These Terms shall be governed by and construed in accordance with the laws of England and Wales and you irrevocably submit to the exclusive jurisdiction of the courts of England and Wales to settle any dispute which may arise out of or in connection with these Terms. If you live outside the United Kingdom, English law shall apply only to the extent that English law shall not deprive you of any legal protection accorded in accordance with the law of the place where you are habitually resident ("Local Law"). In the event English law deprives you of any legal protection which is accorded to you under Local Law, then these terms shall be governed by Local Law and any dispute or claim arising out of or in connection with these Terms shall be subject to the non-exclusive jurisdiction of the courts where you are habitually resident.

You may print and keep a copy of these Terms, which form the entire agreement between you and Mondaq and supersede any other communications or advertising in respect of the Service and/or the Website.

No delay in exercising or non-exercise by you and/or Mondaq of any of its rights under or in connection with these Terms shall operate as a waiver or release of each of your or Mondaq’s right. Rather, any such waiver or release must be specifically granted in writing signed by the party granting it.

If any part of these Terms is held unenforceable, that part shall be enforced to the maximum extent permissible so as to give effect to the intent of the parties, and the Terms shall continue in full force and effect.

Mondaq shall not incur any liability to you on account of any loss or damage resulting from any delay or failure to perform all or any part of these Terms if such delay or failure is caused, in whole or in part, by events, occurrences, or causes beyond the control of Mondaq. Such events, occurrences or causes will include, without limitation, acts of God, strikes, lockouts, server and network failure, riots, acts of war, earthquakes, fire and explosions.

By clicking Register you state you have read and agree to our Terms and Conditions