The total number of Jersey-registered private funds grew 37 percent year-on-year to 365 registered funds in September 2020, according to data by the Jersey Financial Services Commission.
Total regulated fund assets also grew to a new record of £365.6 billion ($498.3 billion; €411 billion) in September 2020, representing a 7 percent uptick year-on-year.
According to Jersey Finance, the growth witnessed throughout the jurisdiction can largely be attributed to the growth in alternative asset classes – encompassing private equity, venture capital, infrastructure and real estate – which grew 12 percent in the past year.
“The Jersey Private Fund in particular has become a real success story and, thanks to its speed-to-market, flexibility and cost-effectiveness, is now perceived as the go-to vehicle for private capital co-investment and cross-border institutional alternative fund structuring,” said Joe Moynihan, chief executive of Jersey Finance.
The JPF regime was introduced in 2017 as an all-encompassing designation built to replace the previous “Private Placement Funds,” “COBO Only Funds” and “Very Private Funds” designations. A JPF must satisfy the basic requirements of having at least two investors pooling their capital as well as “a number of assets being acquired”, such that there would be evidence of “risk spreading,” according to law firm Ogier.
The regime also requires funds to maintain no more than 50 investors and may not include holding companies, joint ventures, securitization vehicles, family office vehicles or carry/incentivization vehicles.