In our forward-thinking finance industry, we have fund managers and administrators, major law firms, international banks and the ‘big four’ accountancy firms – Deloitte, PwC, Ernst & Young and KPMG.
Some North American organisations that have chosen to locate here include Citibank, Royal Bank of Canada and JP Morgan. We have one of the largest number of industry professionals of any international finance centre, with an impressive depth and breadth of expertise.
Here are some examples of US business undertaken by organisations in Jersey recently.
Mourant advised a US real estate investment management business with US$50 billion of assets under management to acquire a majority stake in a Jersey regulated fund services business. The acquisition is part of an expansion by the US asset manager to broaden its investment reach into European markets. Mourant also recently advised Medical Properties Trust Inc., a US-based real estate investment trust, on the acquisition of 30 acute care hospital facilities located throughout the UK for an aggregate purchase price of approximately US$2 billion.
Equiom provides trustee and corporate services to an UHNW client based in the US, who is a beneficiary of a foreign nongrantor trust. Assets totalling approximately US$150m, include discretionary investment portfolios, limited partnership investments, Jersey companies and private company shares. Investments are managed in a US-tax aware manner, being sensitive to the tax issues of the beneficiaries. Equiom regularly works with its US trust company in South Dakota, as well as with its office in Guernsey.
Maples and Calder (Jersey) LLP, the Maples Group’s law firm, recently advised a New York based investment manager, who launched an investment fund targeting a capital raise of US$1.5 billion. The team assisted with the formation of a feeder fund and associated alternative investment vehicles that were authorised as Jersey Private Funds and structured as closed-ended limited partnerships. Investors were predominantly institutional investors, public and corporate pension plans and insurance companies based in the US and Europe. The fund will focus primarily on the US real estate market, investing in distressed and opportunistic commercial and residential properties.
Index Ventures Growth V and X funds are recent examples of Jersey funds where the venture capital firm has offices in both the US and Europe. Jersey legal advice was provided by Ogier and the two funds combined raised US$2bn to invest in later-stage, growth rounds and smaller start-up companies, split between the US and Europe. This is evidence of the high calibre of a venture capital firm choosing Jersey to locate its funds and of how Jersey is helping to bridge the Atlantic divide.
Cain International Management Limited is a privately-held real estate investment firm operating in the US and Europe, and has invested over US$5.8 billion in real estate, debt and equity in Europe and the US since 2014. When Cain International launched their first pan-European real estate fund, the Cain International European Real Estate Opportunity Fund I, Ogier acted as Jersey legal counsel. The fund invests in pan-European real estate growth markets and Ogier provided legal and regulatory advice on the approval of the fund as a Jersey Private Fund, including advising on Jersey’s Alternate Investment Fund Managers Directive regime.
Investment platform provider Praemium International Limited is located in Jersey and assists financial advisors in the US (and other locations around the world). A qualified intermediary with the IRS, Praemium provides separately managed accounts via their JFSC-regulated investment platform for US citizens, the service accesses managed portfolio schemes from SEC-regulated investment managers and takes care of the complex reporting requirements directly to the IRS.
Private equity investor Nordic Capital focuses on investments in healthcare, technology and payments, financial services, and selectively in industrial and business services sectors. Nordic Capital’s first Jersey fund was launched 20 years ago and all of its active funds are fully or partially domiciled in Jersey. The Nordic Capital Funds are advised by non-discretionary sub-advisory entities based in Sweden, Denmark, Finland, Norway, Germany, the UK and the US. Since Nordic Capital’s inception in 1989, it has invested more than €15 billion in over 110 investments. Three of its current investments are headquartered in the US, including ERT that supplies life sciences software, ArisGlobal that provides eclinical solutions for the pharmaceutical industry and Orchid Orthopedic Solutions that designs and manufactures orthopaedic implants.
The International Stock Exchange (TISE) is a Channel Islands based listing and trading venue for a range of equity and debt securities established in 1998. It has attracted several high-profile listings of issuers with links to the US, assisted by Walkers’ Jersey office. It has seen a stream of high yield bonds being listed, often involving New York Stock Exchange listed US-based multinational corporations issuing debt securities under New York law, to investors who are in some cases qualified institutional buyers within the meaning of rule 144A under the U.S Securities Act of 1933, or outside the USA (to non-retail noteholders) in compliance with regulation S under the Securities Act. This features issuers across several states of the US and in a diverse range of sectors, from pharmaceuticals to luxury fashion retail platforms, and often raising several billion dollars.
“I think what makes Jersey stand out, versus many locations of a similar size, is that it truly is an international finance centre.”
Mike Byrne, Partner, PwC Channel Islands