Guernsey has launch the first of its new Private Investment Funds (PIFs), only four months after the new structure was developed and released to the global investment community.
GMT Communications Partners LLP, with the assistance of the Guernsey offices of Northern Trust and law firm Carey Olsen and the Cairngorm Capital II Private Investment Fund advised by Carey Olsen law firm and administered by Carey Group have launched the first two PIFs, Guernsey Finance said in a statement announcing the launches.
As reported by International Investment last year, the new PIF investment has been developed by working alongside the Guernsey regulator to ensure that fund launches could be rolled out quicker with an element of ‘self regulation’ at the heart of this new style fund.
The Cairngorm Capital II Private Investment Fund invests primarily in British middle-market companies in the manufacturing, distribution and services industries. And the GMT Communications Partners LLP Private Investment Fund will focus on tech-enabled assets and services.
Dominic Wheatley, CEO of the island’s promotional agency Guernsey Finance, pictured above and left at last year’s Guernsey funds Forum announcing plans for the new PIF, welcomed the unveiling of two funds in a fortnight, as a “very promising start” for this new regime.
“We had every confidence that this regime would have international appeal, because it was jointly developed by the regulator the Guernsey Financial Services Commission and the island’s £250bn funds sector, so it’s pleasing to see these first two clients moving swiftly to take advantage of this innovative opportunity,” he said.
There is further strong interest in the PIF with more applications pending, Guernsey Finance said.
The PIF structure recognises that certain investment funds are characterised by a relationship between management and investors that is closer than that of a typical agent. It therefore dispenses with the formal requirement for information particulars, such as a prospectus, in recognition of that investor relationship – which significantly reduces the cost and processing time when launching a fund.
Where an appropriate agent is acting for a wider group of stakeholders such as a discretionary investment manager or a trustee or manager of an occupational pension scheme, that agent may be considered as one investor.
While the number of investors in a PIF is limited, there is no cap on the number of investors to whom the PIF might be marketed – a feature not available under comparable regimes, Guernsey Finance said.
The PIF can be either closed or open-ended and should contain no more than 50 legal or natural persons holding an economic interest in the fund.