Jersey introduces new LLC legislation
08 February 2023 Jersey
Image: Dan Marsh/stock.adobe.com
The Government of Jersey has introduced new Limited Liability Company (LLC) legislation, which will enter into force on 14 February.
Categorised as a body corporate, the legislation can be used to issue securities and as a manager vehicle. Alongside the Jersey Private Fund regime, it can also serve as a fund entity.
The Jersey LLC aims to improve the support that the jurisdiction can offer to US alternative fund managers. It is structured in a way that will be familiar to these clients, with a simple registration process and flexible governance requirements, Jersey Finance says.
Additionally, the legislation allows US managers to fundraise within the EU. The Jersey LLC can market into Europe under the alternative fund managers directive third country private placement rules.
Commenting on the announcement, Ellit Refson, head of funds at Jersey Finance, says: “The Jersey LLC has been developed to be a structure US managers and investors are familiar with, backed up by Jersey’s world-class ecosystem for cross-border alternative funds, our leading regulatory framework and our position as a non-EU European time-zone hub.
“US fund managers will now be able to take advantage of seamless marketing into the EU via national private placement regimes, underlining our proposition as the ideal gateway into Europe.”
Philip Pireki, Jersey Finance lead in the Americas, adds: “LLCs are hugely popular in the US private markets space, [and] we see significant opportunity for the Jersey LLC to support their needs.
“Since opening our office in New York three years ago, we have seen our book of US business increase significantly. By adding the LLC structure to our proposition, we are expanding our solutions for the US market even further, as we look to meet the cross-border needs of US managers and sophisticated investors.”
Categorised as a body corporate, the legislation can be used to issue securities and as a manager vehicle. Alongside the Jersey Private Fund regime, it can also serve as a fund entity.
The Jersey LLC aims to improve the support that the jurisdiction can offer to US alternative fund managers. It is structured in a way that will be familiar to these clients, with a simple registration process and flexible governance requirements, Jersey Finance says.
Additionally, the legislation allows US managers to fundraise within the EU. The Jersey LLC can market into Europe under the alternative fund managers directive third country private placement rules.
Commenting on the announcement, Ellit Refson, head of funds at Jersey Finance, says: “The Jersey LLC has been developed to be a structure US managers and investors are familiar with, backed up by Jersey’s world-class ecosystem for cross-border alternative funds, our leading regulatory framework and our position as a non-EU European time-zone hub.
“US fund managers will now be able to take advantage of seamless marketing into the EU via national private placement regimes, underlining our proposition as the ideal gateway into Europe.”
Philip Pireki, Jersey Finance lead in the Americas, adds: “LLCs are hugely popular in the US private markets space, [and] we see significant opportunity for the Jersey LLC to support their needs.
“Since opening our office in New York three years ago, we have seen our book of US business increase significantly. By adding the LLC structure to our proposition, we are expanding our solutions for the US market even further, as we look to meet the cross-border needs of US managers and sophisticated investors.”
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