Originally published in the Investor Services Journal, March, 2008
Guernsey's funds industry has received a double fillip in the last few weeks with the news that one of the Island's administrators has picked up a new private equity award and values under management and administration finished last year with a flourish led by growth in that asset class.
New figures show that funds in Guernsey grew another £13.7bn (8.3%) in the final three months of 2007 despite continued market turbulence during the quarter. That took the total value of funds under management and administration in Guernsey to another record high of £178.2bn at the end of December – up £48bn (37%) during the year. The most eye-catching results came in the private equity asset class where values increased by £5.5bn (19%) during the quarter and £13.6bn (66%) year on year to reach £34bn at the end of 2007.
This is an excellent set of results. The figures are particularly impressive considering the significant market turbulence that we saw during quarter three of last year carried over into the final three months of 2007 and the start of the new year. Given these conditions, the strength of business flows has held up very well and in all honesty surpassed expectations. In particular, the growth in private equity business provides yet further evidence of the Island's strength in this asset class.
Reinforcing this point is the fact that Guernsey-based Schroder Private Equity Services (SPES) has been named 'Best Private Equity Fund Administrator 2007' at the European Venture Capital Journal (EVCJ) awards.
SPES received the accolade during the EVCJ's annual awards dinner at the Dorchester Hotel in London. The venture capital and private equity publication hosts the event to recognise and celebrate outstanding achievement in the sector and it is attended by more than 300 of the most senior industry professionals from around the world.
The trophies – this year presented by the Rt Hon William Hague MP – are awarded on the basis of votes from EVCJ's readership. The award for 'best fund administrator' was a new category introduced this year by EVCJ, which is recognised as one of the leading publications in the field.
Over the last few years and particularly during 2007 Guernsey has been gaining a reputation from leading fund promoters and sponsors as the jurisdiction of choice for private equity. For a Guernsey firm to receive this award so early into 2008 not only reinforces the Island's credentials as a centre of excellence for private equity funds but gives us a significant boost as we look to continue growing our business and developing our infrastructure throughout the rest of the year.
For more information about Guernsey's finance industry please visit www.guernseyfinance.com.
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