The Jersey Private Fund structure (JPF), launched last year, is showing strong appeal across the alternative asset classes with 130 JPFs established by 30 June this year holding a combined total assets under management (AUM) of £19.4bn.
According to statistics collated by the Jersey Financial Services Commission (JFSC), around half of the AUM figure (48%) is attributed to infrastructure, debt and credit funds, whilst hedge funds account for almost a third (29%). Private equity and venture capital funds make up 16% of the total.
“This is the first time this set of figures has been published since the JPF was launched last year as a forward-thinking option for sophisticated investors that balances innovation with an appropriate degree of regulatory oversight.
“The indications are that it is perfectly meeting the needs of a key segment of the alternative investor community who are looking for better co-investment solutions. Firms are reporting, for instance, that the vehicle is particularly popular amongst like-minded family offices who are looking to come together to tap into the burgeoning alternatives market,” , Jersey Finance chief executive, Geoff Cook, (pictured) said in a statement.
The JPF was added to Jersey’s suite of fund structuring options in April 2017, and was introduced to provide institutional and professional investors with a more streamlined and fast-track regime with tailored ongoing regulatory requirements.
“The JPF is essentially mirroring the general growth Jersey is seeing in the infrastructure, debt and credit fund asset classes, which across our funds spectrum grew by 50% over the past 12 months, whilst the JPF is also being well used for hedge, venture capital and private equity funds. Not only does this performance of the JPF reinforce that it offers a much-needed option for small numbers of professional and institutional investors, it also underlines Jersey’s reputation in the alternatives space. We fully expect the upward trajectory of the JPF to continue,” Mike Byrne, chair of the Jersey Funds Association, added.
The product offers the ability to establish a fund for up to 50 investors in as little as 48 hours, with the new figures from the JFSC also showing that almost a quarter of established JPFs (24%) have less than 15 investors or offers.