Private equity drives value of Jersey funds
21 March 2018 St Helier
Image: Shutterstock
The value of regulated funds administered in Jersey increased to almost £300 billion at the end of 2017, according to the latest figures to be collated by the Jersey Financial Services Commission (JFSC) and published by Jersey Finance.
The JFSC said the increase was primarily due to a rise in private equity business.
In Q4 2017, the total net asset value of regulated funds being serviced through Jersey increased by 10 percent over the quarter and by 12 percent year-on-year to stand at £291.1 billion (as at 31 December 2017), the highest value ever recorded.
This growth was driven by the alternative asset classes, which increased annually by 13 percent to represent more than three quarters (77 percent) of Jersey’s total funds activity.
Within the alternative asset classes, private equity fund values rose by almost a third year-on-year (30 percent) to stand at £82.7 billion—the second consecutive year private equity has risen by that level.
Hedge fund values increased by 6 percent to £50.7 billion and real estate rose 2 percent to £37.5 billion.
Commenting on the figures, Geoff Cook CEO of Jersey Finance, said: “These are clearly very encouraging figures for 2017. On a macro level, these are uncertain times, but the indications are clear—Jersey is seen as a forward-thinking jurisdiction that can provide first rate standards of regulatory oversight, that is highly focused on supporting alternative fund managers, and that can offer an effective platform for generating better returns. All that is proving an attractive proposition for managers and investors looking for stability and future certainty.”
Mike Byrne, chairman of the Jersey Funds Association, commented: “Over the past 12 months, Jersey has continued to work closely with the alternative fund management community, and these figures are a reflection of that hard work. Some of the largest private equity funds brought to market last year were structured through Jersey and we continue to see managers selecting Jersey to access both EU capital through private placement and the key UK investor market.”
The JFSC said the increase was primarily due to a rise in private equity business.
In Q4 2017, the total net asset value of regulated funds being serviced through Jersey increased by 10 percent over the quarter and by 12 percent year-on-year to stand at £291.1 billion (as at 31 December 2017), the highest value ever recorded.
This growth was driven by the alternative asset classes, which increased annually by 13 percent to represent more than three quarters (77 percent) of Jersey’s total funds activity.
Within the alternative asset classes, private equity fund values rose by almost a third year-on-year (30 percent) to stand at £82.7 billion—the second consecutive year private equity has risen by that level.
Hedge fund values increased by 6 percent to £50.7 billion and real estate rose 2 percent to £37.5 billion.
Commenting on the figures, Geoff Cook CEO of Jersey Finance, said: “These are clearly very encouraging figures for 2017. On a macro level, these are uncertain times, but the indications are clear—Jersey is seen as a forward-thinking jurisdiction that can provide first rate standards of regulatory oversight, that is highly focused on supporting alternative fund managers, and that can offer an effective platform for generating better returns. All that is proving an attractive proposition for managers and investors looking for stability and future certainty.”
Mike Byrne, chairman of the Jersey Funds Association, commented: “Over the past 12 months, Jersey has continued to work closely with the alternative fund management community, and these figures are a reflection of that hard work. Some of the largest private equity funds brought to market last year were structured through Jersey and we continue to see managers selecting Jersey to access both EU capital through private placement and the key UK investor market.”
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