Private equity drives value of Jersey funds business to record levels
The value of regulated funds being administered in Jersey rose to a record level of almost £300 billion at the end of 2017 driven primarily by a rise in private equity business, according to the latest figures to be collated by the Jersey Financial Services Commission (JFSC) and published by Jersey Finance.
In the final quarter of 2017, the total net asset value of regulated funds being serviced through Jersey rose by 10% over the quarter and by 12% 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% to represent more than three quarters (77%) of Jersey’s total funds activity. Within the alternative asset classes, private equity fund values performed particularly strongly, rising by almost a third year-on-year (30%) to stand at £82.7 billion – the second consecutive year private equity has risen by that level. Hedge fund values increased by 6% to £50.7 billion, real estate rose 2% to £37.5 billion, and the combined total of infrastructure, credit and debt funds rose by 7% to stand at £50.6 billion.
Commenting on the figures, Jersey Finance CEO Geoff Cook 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 added: “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.
“In addition, more than 100 Jersey Private Fund structures have also been established in less than a year since launch and their value is not captured in these regulated fund figures, so it’s clear there is real momentum in Jersey’s funds industry at the moment. With asset managers expected to substantially increase their allocation in alternatives over the coming months, we are extremely confident in the future of the industry.”
Trends in alternate fund structuring, institutional investor behaviour and access to EU investors post-Brexit are all themes to be explored at this year’s Jersey Finance Annual London Funds Conference to be held at 8 Northumberland Avenue on 24th April 2018.