Jersey has augmented its private fund offering with the introduction of the new Jersey Private Placement Fund Guide (the “Guide”).

The Guide sets out a new streamlined regulatory regime for the approval of closed-ended funds which are privately placed to up to 50 potential professional or sophisticated investors (“PPFs”). The Guide can apply to Jersey funds, as well as to funds which are established in other jurisdictions but which are managed in Jersey. The Guide brings a number of advantages – it relaxes the JFSC’s traditional “promoter test” (which sets out detailed criteria against which the JFSC vets new promoters of funds), making it much simpler for new and existing promoters to establish funds in Jersey; it offers a streamlined 72-hour authorisation process for the approval of funds which meet the criteria of a PPF; and it provides certainty in relation to offering document content requirements.

The Alternative Investment Fund Managers Directive, which must be implemented by EU Member States in 2013, should allow PPFs to be marketed to professional investors in the EU pursuant to national private placement regimes until at least 2018. It is anticipated that PPFs will be of particular interest to promoters of various specialist and alternative investment funds, including private equity, mezzanine, infrastructure and property funds.

For further information please contact Martin Paul (martin.paul@bedellgroup.com) or Emily Haithwaite (emily.haithwaite@bedellgroup.com)