More alternative investment funds (AIFs) are being marketed to EU investors through Jersey using National Private Placement Regimes (NPPR) than ever before, according to the latest figures.
Recent data from the Jersey Financial Services Commission (JFSC) for the period ending 31 December 2021 shows that there are now 374 alternative investment funds, including private equity, venture capital, real estate and infrastructure, being marketed into the EU through Jersey via NPPR – a rise of 9% over the previous six months and 47% over the past five years.
In addition, the figures show that there are now 201 Jersey-registered alternative managers (AIFMs) marketing their funds into the EU through private placement – growth of 2% since 30 June 2021 and 58% since December 2016.
Commenting on the figures, Elliot Refson, Head of Funds, Jersey Finance, said:
“This is a clear trend we have been seeing really since the introduction of AIFMD. Growth has in more recent years been driven by Brexit as non-EU managers, including UK managers, have sought a robust domicile to support their EU-fund raising activity, but this is not solely about Brexit. US managers are also now very aware of the appeal of private placement, and we are seeing lots of activity in that space too.
“Managers are finding appeal in the private placement option Jersey provides. It’s tried and tested, it’s familiar, it’s robust and it’s highly cost-effective. For managers who don’t need blanket EU coverage and therefore don’t need a full onshore EU presence – and EU figures indicate that’s around 97% of managers – private placement remains an attractive option. This is reflected in the steady increase we have seen over a number of years now.”
According to the latest figures, Jersey currently administers £450.2bn of fund assets, as at December 2021.