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29 October 2020
As We Are Guernsey reports that investment flows between Guernsey and the United States are growing, Guernsey's private equity regime appears to provide the perfect conditions for managers and their investors.(1)
Guernsey ticks all the right boxes when it comes to private equity – both private and listed. Importantly, Guernsey's private equity regime is simple and established, with sensible proportionate regulation which recognises the sophistication of managers and their investors. Guernsey is the ideal gateway to the United Kingdom and the European Union for US managers who continue to make use of private placement regimes in all of the key markets.
According to new research commissioned by the island's government, Guernsey-domiciled funds saw a capital flow of £43 billion into the United States in mid-2019, with one-third of that figure originating in that country. More than two-thirds of that figure was invested in private equity. US investors backed Guernsey-domiciled funds with £43.6 billion, more than £33 billion of which was invested globally, particularly in Europe.
In mid-2019 the net asset value of Guernsey-domiciled funds under management and administration in Guernsey was £227.7 billion.
Successfully attracting US-based investors into its private equity funds, some 95% of all investment from the United States into Guernsey funds goes into private equity, which is by far the largest share going into the sector from any single jurisdiction.
Guernsey has proved to be a simple route for US investors to access European and UK markets, made attractive by its time zone and range of structures and the ease of accessing European markets through its national private placement regime.
(1) Further information is available here.
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