New LLC legislation, which significantly enhances Jersey’s proposition as a leading jurisdiction supporting US alternative fund managers, was officially approved by the Government of Jersey on 7 February, and came into force on 14 February.
The law expands Jersey’s existing comprehensive suite of private fund vehicles, adding a new structure that is intended to be familiar to US private equity, venture capital and other alternative fund professionals.
Benefitting from a simple registration process, the Jersey LLC, which will have separate legal personality and can be classed as a ‘body corporate’, is expected to offer a number of key opportunities, including being used for issuing securities, as a manager vehicle, and as a fund entity in conjunction with the hugely successful Jersey Private Fund (JPF) regime. The unique flexibility of LLC operating agreements will afford members the ability to structure and manage their undertaking as best suits their needs.
The structure also provides certainty for US managers looking to fundraise within the EU, with the Jersey LLC able to market into Europe, subject to the usual fund permissions from the Jersey Financial Services Commission (JFSC), under the Alternative Fund Managers Directive (AIFMD) third country private placement rules.
Access the new factsheet: The Jersey Limited Liability Company (LLC)