Jersey Finance has launched a new LLC structure to attract US alternatives managers looking to establish European-focused funds.
As more offshore jurisdictions find themselves on the EU AML blacklist, US managers are having a hard time marketing into Europe. Enter Jersey Finance’s new LLC structure, which is modeled on existing LLC structures in other jurisdictions in Cayman and Delaware.
The new structure expands Jersey’s existing suite of private fund vehicles with a new structure that is familiar to PE, VC and other alternative managers. It went into effect on February 14.
Elliot Refson, head of funds for Jersey Finance, said the new LLC structure offers quick and easy access into Europe for US managers through National Private Placement regimes.
Because Jersey is not viewed as a high-risk country under the latest European laws against money laundering, Refson said the new LLC structure offers a “future proof solution” for marketing under the Alternative Investment Fund Manager Directive and other European directives.
Although the rule has only been in effect for a few days, Refson said managers and lawyers have been waiting for the LLC structure to become available in order to use it for securities issuing vehicles, Jersey private funds, and alternative investment fund managers.
The new Jersey LLC framework comes amid a period of sustained growth for Jersey’s funds industry in relation to the US market, with funds business from US promoters more than doubling over the past five years.
Philip Pirecki, Jersey Finance Lead in the Americas, said: “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.”