Streamlined approvals process attracts further private equity fundraising to the island
Private equity fundraising in Jersey is predicted to rise by more than £6bn in 2007, delegates at the Jersey Finance Annual London Conference have been told.
Speaking at the conference, Noel Ainsworth, London head of private equity funds at law firm Simmons & Simmons, said, as a result of recent initiatives introduced in Jersey, the jurisdiction would continue to attract more and more private equity business.
Within Jersey, private equity fundraising has increased year-on-year from 2003. More than £12.7bn of private equity capital was raised in Jersey in 2006 and this figure is predicted to increase to £19.3bn in 2007, according to Ainsworth.
He said the Expert Funds Regime, which streamlines the approvals process for expert investors, such as those in private equity, has had significant impact.
Ainsworth described the regime as a great success because of its speed, administrative benefits and flexibility. He said: "The streamlining of the authorisation process means that the traditional time-scale from inception to authorisation by the commission is reduced from a matter of weeks to a few days. Jersey's Expert Funds Regime provides an environment for regulatory supervision but with less red-tape."
In 2006, the estimated amount of capital raised worldwide by private equity firms was $432bn. Ainsworth pointed out that offshore jurisdictions boast a number of advantages for private equity firms. He added: "Legislation, regulation, the expertise of local service providers and, most importantly, tax are the main drivers for offshore private equity funds."
Other topics discussed at the conference included changes to trust law, company law and securities law, the active pursuit of Sharia-compliant products and the growing number of specialist fund managers and family offices now relocating business to the island.
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