Are you a first-time fund raiser?
The growth in Jersey
In a recent study collated by the Jersey Financial Services Commission (JFSC) for the year ending 31 December 2021, the value of regulated funds under administration increased by £72.1bn year-on-year (19%) to stand at £450.2bn.
The increase has been mainly driven by the alternative asset classes, including private equity, real estate, hedge, credit, and infrastructure, which now represent 89% of total funds business. (with private equity and venture capital, in particular, increasing by 27% over the year).
Furthermore, over the last five years, the fund business in Jersey has increased by over 75% (as noted by Tim Morgan, ex-chair of the Jersey Fund Association).
This demonstrates Jersey’s desirability to both experienced and first-time fund raisers looking for an established leading jurisdiction with high-quality resource and expertise to support their needs.
For all Fund Managers, particularly first-time fund raisers various considerations must be addressed before launching their fund:
1. Jurisdiction of the Fund
Selecting a jurisdiction for your fund structure (be it Jersey, UK, Luxembourg, or another) will have implications for you as a Fund Manager, and your investor base. It’s important to assess each of them and consider which jurisdictional option by weighing up both the positive and negative characteristics before making an informed decision.
Selecting a jurisdiction won’t be a straightforward decision, as each jurisdiction holds a unique set of characteristics.
The tax structure of the jurisdiction will have implications for Fund Managers and the assets their fund will hold, as well as the incoming investor base.
Some jurisdictional taxation policies can be complex and reporting requirement heavy depending on factors such as carried interest, capital gains, or economic substance.
3. Regulatory framework
The regulatory framework for any jurisdiction is riddled with complexity which continues to evolve and change. Fund Managers should understand and be comfortable with the regulatory framework of their chosen jurisdiction, as well as hold confidence that their fund administrator has both the expertise and resource to manage their requirements.
4. Service Providers
This is probably the most pivotal of all your decisions as a first-time fund raiser. Service providers, from legal counsel, and tax advisors to fund administrators will all contribute and support your fund right through its life cycle. So, choosing the right one to partner with, who you trust is so important.
1. Innovative technology systems.
Innovative technology and a secure working environment are the cornerstones of our fund service offering. We have selected our system partners not just because they offer us the best-in-class product now, but because they have the compatibility and functionality to evolve as the fund industry changes, allowing us to remain at the forefront of the fund administration sector, delivering the highest quality of service to our clients for the long term.
2. Expert leadership.
Our team of experts has a unique blend of knowledge from both the fund manager and fund administration perspectives. This combination enables us to fully understand your needs and your demand for the highest level of service.
3. Team composition.
We provide you with a dedicated Client Director who will be actively involved from day one of the engagement and will be responsible for delivering a service in line with your expectations. They are supported by a dedicated team of experts who hold the experience and knowledge that matches the needs of your structure.
We work with people that inspire us, clients that trust us, and partners who believe in us.
Our highly experienced fund services teams across the UK, Jersey and Luxembourg have extensive expertise working on a wide range of fund structures.
This enables us to provide the highest level of service to our clients, whether you are a first time fund raiser or an established fund manager who is looking to improve the service quality you and your investors receive.