Matt Sanders
Managing Partner
Guernsey
KEY TAKEAWAYS
The PIF is an attractive product, providing flexibility and cost-effectiveness due to speed to market and "light touch" regulation and is the best option for a wide-range of managers and asset classes, including small venture capital funds launched by first-time managers, right the way through to large private equity or real estate funds.
Under the PIF Rules 2025, there are two alternate routes available for PIFs in Guernsey:
Although neither route requires the appointment of a GFSC-licensed manager, one can be appointed if desired. Where a PIF takes the form of a limited partnership with a Guernsey general partner, the general partner will need a licence even if the PIF is a Qualifying PIF or a Family PIF (although note that certain GFSC rules will not apply to that licensed general partner). Where a manager or general partner needs to obtain a licence, the application is made at the same time as the PIF registration application and is fast- tracked on the same one business-day turnaround.
Under both routes:
The QPIF is only open to "Qualifying Private Investors" ("QPIs"), who are able to evaluate and bear the risks and strategy of investing in the PIF. The QPI concept includes: a "Professional Investor", an "Experienced Investor", a "Knowledgeable Employee", a "High Net Worth Investor", an "EU Professional Client", a "UK Professional Client" and a "US Accredited Investor". A QPI will also comprise any investor that a GFSC-licensed manager or administrator of the PIF warrants is able to sustain any losses on their investment in the PIF.
As part of the PIF application, the PIF’s administrator must provide the GFSC with a declaration that effective procedures are in place to ensure restriction of the fund to QPIs. The PIF's administrator must obtain and retain (for provision to the GFSC on request) a written acknowledgement from each investor as to their understanding of the regulatory status of, and risks of investment in, the PIF, as well as their acceptance of such risks and confirmation of their ability to withstand the potential economic consequences of investment in the PIF.
A QPIF that has no separate manager will be a "self-managed fund" for economic substance purposes and will be subject to economic substance requirements in Guernsey. Where the PIF is a limited partnership, the general partner will be the manager and so the PIF will not be a "self-managed fund".
A Family PIF is only open to investors who either share a family relationship or are an "eligible employee" of the family in question. The PIF cannot be marketed outside the family group.
As part of the PIF application, the PIF’s administrator must provide the GFSC with a declaration that effective procedures are in place to ensure that all investors fulfil the family requirement.
A Family PIF is a viable option for a regulated family office, although it is worth noting that a family office or investment club of family investors does not need regulating in Guernsey.
A Family PIF that has no separate manager will be a "self-managed fund" for economic substance purposes and will be subject to economic substance requirements in Guernsey. Where the PIF is a limited partnership, the general partner will be the manager and so the PIF will not be a "self-managed fund".
Walkers has a dedicated private investment funds team in Guernsey who work with a broad base of clients on a diverse range of products. We can provide a complete package of Guernsey regulatory, corporate, partnership, tax and economic substance advice in relation to fund formation and on-going advice during the investment fund life-cycle. Our Guernsey team works closely with our investment funds experts across our global network to ensure that each client obtains the appropriate multi-jurisdictional advice.
Key Contacts
Managing Partner
Guernsey
Senior Counsel
Guernsey
Senior Counsel
Guernsey