Jersey offers easy and cost-effective marketing into the EU through National Private Placement Regimes (NPPRs), providing managers with an attractive alternative to the Alternative Investment Fund Managers Directive (AIFMD) passport.
The AIFMD ‘passport’ allows EU investment funds to be distributed across the EU. However, the EU investment fund market is still predominantly a national market – in fact, only 3% of EU alternative investment funds (AIFs) are registered for sale in more than three Member States.
NPPR works thanks to bilateral agreements between Jersey’s financial regulator and those in each EU Member State, and Jersey has these in place with the majority of EU countries. Brexit will not impact these agreements.
Crucially, marketing through NPPR offers a lighter regulatory burden and therefore often a lower cost to managers than the AIFMD passport. In a nutshell, using Jersey offers alternative fund managers:
- future certainty
- simplified regulatory obligations
- a tried and tested regime
- a cost-effective platform
The NPPR route through Jersey is working extremely well. Recent figures show that the number of alternative fund managers (AIFMs) choosing to future-proof their EU-focussed funds through Jersey grew by 8% in the first six months of 2018, and by 23% year-on-year as at June 2018, to stand at 161 managers.
Meanwhile, the total number of Jersey alternative investment funds (AIFs) being marketed into the EU through NPPR also increased to stand at 306, representing a 5% increase over the first half of the year and an 11% rise since June 2017.
Jersey offers a compelling proposition. But don’t just take our word for it – the following pages are some real-life examples of funds launched in the past two years where a Jersey-based AIFM has successfully raised EU capital through private placement, some through reverse solicitation and some through active marketing.
As the following case studies show, Jersey’s NPPR route is working incredibly well in practice and is an optimal solution for managers based in a diverse range of non-EU countries running a broad range of fund types, sizes and asset classes. The message is clear – Jersey is playing a key role in enabling managers to continue to market their funds to EU investors through its tried and tested private placement platform.