With the end of the BEXIT transition phase looming, new figures continue to point towards Jersey playing an increasing role in enabling alternative fund managers to access EU investor capital post-Brexit.
According to recent data from the Jersey Financial Services Commission (JFSC), the number of managers choosing to market their funds into the EU through Jersey using national private placement regimes (NPPR) is continuing to rise.
As at 30 June 2020, there were 192 Jersey-registered alternative managers marketing their funds into the EU through private placement – a 5% rise on the figure from six months prior and 12% compared to June 2019. In addition, the number of Jersey-registered funds marketing into the EU through NPPR also increased to stand at 333, representing a 4% rise since December 2019 and 7% annually.
Commenting on the figures, Joe Moynihan, CEO, Jersey Finance, said: “With Brexit deal negotiations finely poised, the likelihood is that there will continue to be uncertainty for some time around the way non-EU funds, including UK funds, can be marketed to EU investors. The fact remains that private placement provides a tried-and-tested, flexible and cost-effective solution for third country private equity, infrastructure and other alternative managers to continue to target EU investors in light of Brexit.
“These figures are evidence of a sustained trend stretching back some years now of managers putting their faith in Jersey’s platform and in particular the private placement route to market, and we expect to see further growth in this area as managers implement post-Brexit strategies”.
Tim Morgan, Chair, Jersey Funds Association, added: “This is a critical moment for managers as they explore models and structures that are future-proofed against the backdrop of Brexit, and the clear evidence is that private placement through Jersey, backed-up by the jurisdiction’s expertise, framework, and oversight, remains a vital and increasingly popular solution amongst alternative managers, that can guarantee ongoing seamless market access”.
According to the latest quarterly figures, Jersey currently administers £361bn of fund assets, as at June 2020. Further case studies on how private placement works in practice can be found here.
