A growing number of Jersey-registered fund managers are opting to future-proof their strategies and market into Europe through national private placement regimes (NPPRs) under the Alternative Investment Fund Managers Directive (AIFMD), according to the latest figures from Jersey's regulator the Jersey Financial Services Commission (JFSC).
As at December 2017, 149 alternative investment fund managers (AIFMs) had been authorised in Jersey to market into Europe through NPPRs, up 17% compared to December 2016, clearly highlighting that the use of private placement continues to work well as a means of marketing funds into the EU.
Over the same period, the total number of Jersey alternative investment funds (AIFs) being marketed into Europe through NPPRs also increased significantly to stand at 291, representing a 15% year-on-year increase.
In addition, the JFSC has now authorised a total of 31 depositaries in Jersey under AIFMD, a figure that has risen 7% over the year.
Commenting on the figures, Geoff Cook, CEO, Jersey Finance, said:
"We're continuing to work together with the fund management communities both in and outside of the EU, so it's pleasing to see such a strong uptake of Jersey's tried-and-tested private placement regime. Five years on since AIFMD was introduced, it's a route that is proven to work, providing alternative managers with a clear, effective and future-proof means of accessing EU investor capital."
Mike Byrne, Chairman, Jersey Funds Association, added:
"We believe that Jersey is extremely well positioned to play a positive role in supporting alternative managers right across the private equity, real estate, hedge, debt and infrastructure asset classes, particularly against a Brexit backdrop.
"Whilst these latest figures reinforce that Jersey has a key role to play in giving non-EU managers, including those in the US, Asia and soon the UK, with a means of marketing into Europe, we are also seeing EU managers structuring through Jersey to tap into the vital UK market. In doing so, we are enabling them to get on with generating good returns for investors – something that is in everyone's interest."
The use of private placement as a means of accessing EU capital in the context of Brexit will be one of the issues to come under the microscope at the 2018 Jersey Finance Annual London Funds Conference later this year (24 April), which will also examine how market trends, shifts in regulation and protectionist movements are challenging and shaping the global funds industry.
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