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:

  • Alchemy

  • BC Partners

  • Terra Firma

  • Permira

  • Apax

  • Coller Capital

  • EQT

  • KKR

  • Apollo

  • CVC

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.

Infrastructure

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.

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.