Jersey’s forward-thinking funds regime offers a spectrum of regulatory oversight depending on investor needs and expertise. Jersey has an excellent track record in the structuring, management and administration of fund vehicles. Leading the way, it is a specialist centre in alternative funds, including private equity, hedge, real estate and infrastructure funds, and these account for around 70% of Jersey’s overall funds business. Where access to EU investors is of key importance to managers post-AIFMD (Alternative Investment Fund Managers Directive), Jersey provides unrivalled third country access through the (now thoroughly tested) use of National Private Placement Regimes, and is ESMA-approved already for future AIFMD passporting.
World’s largest investment fund established in Jersey
SoftBank Group Corporation has selected Jersey for the structuring of its new Vision Fund, working alongside law firm Carey Olsen and fund and corporate services provider the Aztec Group. The SoftBank Vision Fund L.P. has now raised over $93 billion in committed capital, making it the world’s largest ever investment fund. This record-breaking level of commitment has been raised from some of the world’s largest sovereign wealth funds and biggest and most recognised technology companies. The Vision Fund has drawn widespread public interest since it was announced in October 2016, due to the significant fundraising target, high profile investors and the potentially transformative effect it will have on the development of future-focused global technology.
Fund services for Saudi asset management company
Fairway Group provides administration, director and corporate secretarial services for SEDCO ICC, a closedended Jersey expert fund, focused on commercial properties in the UK. SEDCO ICC is managed by SEDCO Capital, a large global asset management firm headquartered from Saudi Arabia, offering advisory and discretionary management services. The structure was established in 2015 and continues to add new cells for additional investments. In 2015 the Fund acquired a significant share of Blakelands, a major industrial park in the south east of England. The share was sold in 2016 for £36 million, delivering a significant profit to investors from the purchase price. Since the sale, SEDCO Capital has pursued several real estate holding vehicles operated outside of the ICC in Jersey, including expansion into European property.
Launch of AEW Value Investors Asia II Fund
Ogier recently acted as legal advisers to AEW Value Investors Asia II, which held its final closing, having raised commitments totalling US$590.2 million, including US$15 million of sponsor co-investment capital. This is AEW Capital Management’s (Asia) second Asia value-add fund. The fund is a closedended Jersey Expert Fund structured as a limited partnership. Investors are primarily public and corporate pension plans and insurance companies based in the U.S. and Europe. The fund currently has six assets in Hong Kong, Seoul, Singapore and Shanghai, representing US$255 million of equity and over 937,000 square feet of office and retail assets. In 2015, AEW acquired 686 Juijiang Road, a 14-storey office building in Shanghai’s Puxi CBD.
Private equity fund investing across Africa
Intertrust provides administration services for ADP I L.P., a Jersey expert fund focussing on private equity fund investments across Africa. The fund is one of two parallel vehicles (ADP I) advised by London-based Development Partners International (DPI) and the aggregate ADP I current commitment is close to €270 million. Investments have been made in industries including telecommunications infrastructure, financial services, healthcare and FMCG. The portfolio includes Eaton Towers, a leading telecom tower company in Africa, Letshego, a pan-African financial services provider and Biopharm, a leading pharmaceuticals company in Algeria.
Jersey-managed fund focusing on India’s growth
The Ashburton India Equity Opportunities Fund, managed by Ashburton’s investment team in Jersey, is focused on unlocking the value in India’s growth predominantly through industrial, financial and consumer related companies. The fund recently reached US$100 million assets under management, as well as celebrating its four-year anniversary. The current portfolio includes stocks aligned to the substantial domestic consumption story, including Mumbai-based UltraTech Cement and Capital First, a leading lender for consumer loans.
Fund administration for Qannas Investments Limited
Estera Trust (Jersey) Limited has been appointed by ADCM Ltd, a reputable alternative investment firm based in Abu Dhabi, as fund administrators for Qannas Investments Limited (QIL). QIL is a closed-ended, opportunistic fund listed on AIM. Worth approximately US$79.4 million, the fund invests mainly in the Middle East, UK and Europe, with assets in real estate, funds and the hospitality industry. QIL’s investments include ADCM Secondary Private Equity Fund L.P, SPE Qannas C Limited and Integrated Financial Group LLC.
“In a global environment that remains challenging from a regulatory point of view, Jersey offers significant fund structuring opportunities through the right support and guidance.”
Chairman, Jersey Funds Association
Nordic-focused funds domiciled in Jersey
All of Nordic Capital’s active funds are domiciled in Jersey, with its first Jersey fund launched almost 20 years ago. The fund manager attracts capital from international institutional investors, including public and private pension funds, sovereign wealth funds, financial institutions, endowments and family offices. Its most recently closed fund, Nordic Capital Fund VIII, reached its hard cap in December 2013, with €3.5 billion in committed capital, with investors from North America (48%), Asia and the Middle East (28%), Europe (23%) and the rest of the world (1%). Nordic Capital Funds have assets under management of approximately €11 billion (as of January 2017).
Fund investing in renewable energy market
Carey Olsen’s Jersey investment funds team advised NTR plc on the successful final close of its new investment fund with a hard cap investment of €250 million. The private placement fund, NTR Wind 1 Fund LP, invests in onshore wind projects in Ireland and the UK and is one of a growing number of funds investing in the renewable energy market across the UK and EU. Jersey proved an attractive location to establish the fund due to the Island’s flexible and streamlined approach to the regulation of private placement funds and compliance with the AIFM Directive, enabling the fund to be marketed in the UK and Ireland using national private placement regimes.
Fund investing in African mining sector
Crestbridge provides administration, director and accounting services to a natural resources private equity fund focused on mining jurisdictions, including Africa. With US$375 million assets under administration, the fund invests in high quality opportunities in the mining sector. The fund, which has been accepted as a signatory to the United Nations-backed ‘Principles for Responsible Investment’, is committed to implementing environmental, social and corporate governance (ESG) best practice in all its investment practices.
Asia-Pacific multi-strategy equity fund
LGL provides corporate, secretarial, administration, accounting and MOME services, as well as providing directors to the fund management entity for Bennelong Asset Management, the Australian-based fund promoter of an Asia-Pacific multi-strategy equity fund. This is a Jersey expert fund that invests across developed Asia and has a global investor base including institutional and HNW investors. Bennelong initially established a Jersey private fund, to establish a track record, and then transferred all investors to launch the Jersey Expert Fund. Peak AUM of this fund was US$3.2 billion.
London real estate acquisition for GCC fund
Hawsford provides fund administration, company secretarial and director services to a group of investors across the GCC investing in prime London real estate. It is part way through facilitating the fund’s first acquisition, which includes a major development opportunity to the value of £40 million. Further investments are currently being investigated by the investment managers and the board.
Working with Japanese promoters
State Street Global Services Jersey assists Japanese financial institutions to establish and operate customised investment fund arrangements for institutional investors. It has worked with a wide range of Japanese promoters including insurance companies, banks and investment managers. For example, it services a number of umbrella fund arrangements for Nissay Asset Management, a substantial investment manager. Current business from Japan consists of 39 funds with AUM of approximately US$7 billion. The Japanese client service team in Jersey is supported by an offshore support team based in Tokyo which facilitates Japanese time-zone communications.
Jersey fund for large listed Russian bank
Walkers recently advised one of the largest Russian regional banks, Bank Saint Petersburg (BSPB), on the launch of a new private equity fund. The fund will focus on private equity investments aimed at high growth technology companies in Russia and elsewhere. It was set up as a Jersey closed ended Very Private Fund (Limited Partnership), with a corresponding Jersey General Partner and Investment Adviser vehicle. The fund, which is the first investment structure to be launched by BSPB, plans to raise between US$30 million to US$70 million, with the investor base consisting primarily of BSPB’s own capital, in addition to its existing business network contacts.
Administration for Schroders’ real estate division
Schroders is one of the world’s leading asset managers, employing 4,000 people across 27 countries, including 700 people in the Asia-Pacific region. Aztec Group’s team in Jersey provides fund administration services to the company’s real estate division, which has over US$15.4 billion in AUM across a broad range of open and closed-ended real estate funds.
Real estate structures for Rasmala Group
Volaw provides a wide range of administration services for Rasmala plc, an independent investment manager headquartered in London, and its regulated subsidiary in the Dubai International Finance Centre, Rasmala Investment Bank. Rasmala delivers a range of investment choices and asset-backed finance to pension funds, family groups, corporates and financial institutions and has announced the expansion of its real estate activities following the launch of a series of new and innovative funds. Volaw has assisted with the development and establishment of several Shariah-compliant structures to acquire various commercial real estate assets in the UK, totalling over £62 million to date, and continues to administer these structures on behalf of Rasmala and their investors.
Funds investing in Asia
Ipes (Jersey) Limited provides administration and accounting services to several fund of fund structures investing in Asia and China. The funds have a combined net asset value of US$115 million (as at 30 June 2016). The master funds have a combined commitment of almost US$7 billion. The structures consist of diverse portfolios in sectors including financial services, telecoms, retail, healthcare and industrial. Investors in the Asia and China funds are from countries around the world.
Investment capital for urban regeneration
Mourant Ozannes advised a listed Hong Kong multinational on the investment arrangements for a Jersey Property Unit Trust, which was authorised as an Expert Fund and listed on The International Stock Exchange (TISE). The fund provided investment capital for two separate and highly successful urban regeneration projects in London, resulting in the development of over 500 residential homes and social housing units.