Jersey's New Private Funds Prove Attractive to Experienced Investors

The Island's new Jersey Private Funds regime appears to be successfully striking the right balance between investor protection and freedom for experienced investors to invest where they want, according to law firm Walkers.

The Jersey Private Fund will eventually take over from other similar investment products where the rules are simpler because their use is restricted to experienced or wealthy investors.

The JPF can only be marketed to a maximum of 50 investors who are 'professional' or have a minimum of '£250,000 each to invest. The fund does not need Jersey-resident directors or require an offering document to be approved, and it can be set up in a streamlined process taking less than 48hours.

The main requirement is that it needs a designated service provider registered with the Jersey Financial Services Commission who has to carry out the due diligence on the fund's promoters.

In just over a year since the regime was introduced, more than 120 JPFs have been approved to invest in a wide range of alternative assets. Two of the earliest funds were for the Westbrooke Group which has a presence in South Africa and the United Kingdom.

 

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This article first appeared in the Jersey Evening Post.


JERSEY
Jonathan HeaneyManaging PartnerT +44 (0)1534 700 786jonathan.heaney@walkersglobal.com