Supporting US Fund Managers' Ambitions
| Published date | 27 January 2023 |
| Subject Matter | Finance and Banking, Fund Management/ REITs, Securitization & Structured Finance, Fund Finance |
| Law Firm | Jersey Finance Limited |
| Author | Mr Elliot Refson |
Jersey's alternative funds platform is tried and tested and is supporting the growing ambitions of US fund managers. With a unique shared history dating back to the 17th Century - evident notably through the name of the island - Jersey has been working with organisations and individuals across North America for many years.
As a specialist funds hub, Jersey has positioned itself as an attractive location for cross-border investment and, particularly, as the ideal gateway to Europe for non-EU, including US, fund managers - specifically against the backdrop of the EU's Alternative Fund Managers Directive (AIFMD), introduced almost ten years ago.
It was with this in mind that Jersey Finance established an office in New York three years ago and, most recently, held a successful roadshow covering a number of locations including San Francisco, Miami and Chicago.
The message to US managers over recent years, and throughout the recent roadshow, has been clear - Jersey can provide straightforward access to Europe through National Private Placement Regimes (NPPRs), a well-established model offering distinct advantages - in particular, avoiding the heavy cost and administrative burden necessary under full AIFMD compliance, which is unavoidable if opting for an EU-based jurisdiction.
It's a message that has resonated well with managers in the US. Since Jersey Finance opened its office in New York, the number of US-originated fund structures has grown 61%, while the value of fund assets under management serviced in Jersey has risen by 22%, according to Monterey.
In addition, enhancements to Jersey's Limited Partnership legislation earlier this year and changes to the EU's rules around reverse solicitation for non-EU alternative funds have also heightened Jersey's appeal among US managers.
Meanwhile, Jersey has continued to evolve its relationships and deepen its proposition in the US market this year. There is, for example, growing interest in Jersey's capabilities in the structured finance space, specifically in Collateralized Loan and Collateralized Debt Obligation vehicles migrating to Jersey from other jurisdictions.
It is not one-way traffic though; Jersey is increasingly conscious of the need to evidence the positive impact it has in markets around the world, including North America. To that end, Jersey Finance commissioned research last year to quantify Jersey's contribution to 'global value chains'.
That research found that Jersey supported...
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