Guernsey-domiciled fund values rise by £1bn

As fundraising figures fall across Europe, Guernsey-listed private equity assets hit more than £36bn in the second quarter.

The value of private equity funds registered in Guernsey rose by £1 billion ($1.8 billion; €1.2 billion) in the second quarter of 2008, bringing the current total to £36.2 billion. The change represents a 2.5 percent increase, according to data from industry group Guernsey Finance.
The increase comes amid difficult market conditions that have seen private equity fundraising across Europe fall by around 10 percent this year, the group noted in a report.
Guernsey Finance cited the £20 million acquisition of Guernsey-based private equity fund administrator IPES by middle market firm RJD Partners as a sign of booming times in the jurisdiction, as well as the fact that UK-headquartered private equity firms Terra Firma and Permira recently established operations there.
Guernsey has introduced several fast track application processes for certain investment funds, helping to lure more private equity funds to the jurisdiction. The listing of KKR Private Equity Investors in June 2006 was also a powerful draw, according to the report. 
“It could be argued that the listing of the $5 billion Guernsey limited partnership KKR Private Equity Investors on the Amsterdam Euronext was so innovative that it has been the largest single contributor to the island’s recent success in the asset class,” the report said. “It highlighted that Guernsey was one of the few jurisdictions from where funds wishing to list on Euronext do not need to obtain a licence in the Netherlands because the Dutch AFM has ruled that there is already adequate ‘home’ supervision.”