A growing number of global fund managers are finding appeal in Jersey’s regulatory platform for accessing EU capital, according to year-end figures.
According to data collated by the Jersey Financial Services Commission (JFSC), 240 alternative investment fund managers (AIFMs) were using Jersey’s national private placement regime (NPPR) to market their funds to the EU investor market at the end of 2024 – a year-on-year increase of 4%.
Those managers were marketing 448 separate funds to EU investors through Jersey’s NPPR route to market – an annual uptick of 8%, spanning the full spectrum of alternative asset classes, including private equity, venture capital, real estate and infrastructure.
The longer-term figures support that upward trend – over five years, the number of managers using Jersey’s private placement regulatory regime has grown by 31%, with the number of funds being marketed into the EU this way growing by 40% (compared to December 2019).
Commenting on the figures, Elliot Refson, Head of Funds, Jersey Finance, said:
“These latest figures reinforce the trend we have been seeing for some years as managers outside of the EU bloc have sought to market their funds effectively to EU investors against the backdrop of the AIFMD and wider complex international regulatory landscape. Jersey’s private placement regime offers those managers a tried-and-tested solution with tax neutrality, regulatory simplicity and cost-effectiveness, all contributing to its appeal.
“Whilst growth has previously been driven by Brexit for UK managers, more recently we have seen interest from managers in other locations outside of the EU – in particular Asia and the US – as managers have responded pragmatically to market conditions to optimise their structuring and operating frameworks where there is an EU nexus. Jersey has been a beneficiary of that.”
Michael Johnson, Chair, Jersey Funds Association, added:
“Alternative fund managers appreciate the experience and expertise Jersey’s ecosystem offers when it comes to global alternative fund distribution – and in the context of European fundraising, its private placement option is a highly efficient and cost-effective means of accessing that EU capital. With EU figures indicating that only around 3% of managers actually need blanket EU coverage and a full onshore presence – and with Jersey’s positive Moneyval assessment last year providing further reassurance – we fully expect Jersey’s private placement option to retain its appeal in the years ahead.”
The figures follow the recent publication of the latest annual Monterey Jersey Fund Report 2024, which shows that the value of Assets Under Administration (AUA) in Jersey’s funds industry grew by 6.1% year on year (as at June 2024) to stand at an all-time high of US$630bn, whilst the number of fund vehicles established in Jersey also rose, with the total number of funds and sub-funds serviced in Jersey up to 2,450 – the most ever recorded in Monterey’s Jersey reports.
