In the latest sign that Guernsey is seeking to built its reputation as a private-equity-specialist jurisdiction, the Guernsey Investment Fund Association announced on Monday that it has signed a memorandum of understanding with the China Association of Private Equity (CAPE).
The British Private Equity & Venture Capital Association’s Channel Islands Working Group, or BVCA CIWG, was also a signatory, and “will enjoy the benefits that come with closer ties”, the Guernsey Investment Fund Association (GIFA) said.
The MOU was signed at CAPE’s Beijing offices earlier this month by CAPE’s secretary-general, Li Weiqun, and Guernsey Finance’s director of international business development, Kate Clouston. The MOU “sets out a statement of intent to facilitate collaboration in the areas of training, corporate governance, events, research and public affairs” according to GIFA.
“It is hoped that by developing strong ties, the three representative organisations will be able to share expertise and bring long-term benefits to their respective members,” the GIFA added.
Clouston said there was “dynamic energy in the Beijing private equity and venture capital space at the moment”, and added that the private equity industry generally was “developing at lightning speed”.
“We feel Guernsey is perfectly placed to offer expertise gained through our 50-year finance industry history, and to develop a standout offering suited to the multinational viewpoint required in global business today,” Clouston added.
Growing specialism in private equity
Guernsey is currently home to such private equity administration specialists as IPES, Northern Trust and Aztec Group. Jon Moulton, who is chairman and founder of Better Capital, a London-based turnaround specialist and a well-known figure in the world of private equity/venture capital, is resident in Guernsey, and has been active in the running of the Guernsey-based Channel Island Securities Exchange.
In works for three years
The signing of the MOU comes three years after Guernsey Finance’s Asia representative, Wendy Weng, met CAPE secretary-general Li. Weng and Guernsey Finance “have been working with CAPE to facilitate greater cooperation between the two jurisdictions” ever sine, the GIFA noted.
The GIFA was established in 1989 as a trade association to represent Guernsey’s growing fund management community. The BVCA CIWG, meanwhile, was launched in 2014, in order for the BVCA to be better informed on strategy concerning private equity and venture capital issues specific to Guernsey and Jersey.