Speaking at this year’s annual JFA Dinner, Mike Byrne said that Jersey provides “the very best ecosystem for a funds industry”, with figures for the end of 2017 indicating that the total net asset value of funds under administration in Jersey stood at more than £291bn, up 15% year-on-year.
Pointing to rising levels of business across the alternative asset classes, Mr Byrne said that allocations to private equity, private debt, real estate and infrastructure are ever-increasing in Jersey, adding that latest figures indicate the local funds industry is in excellent health.
He said: “However, those figures are only part of the story – they don’t take into account the Jersey Private Fund (JPF). We know that over the thirteen months since the JPF was introduced, 121 have been launched. I’m optimistic that if we were to include JPF data, that would push us clearly through the £300bn mark.
“We’re also seeing a growing community of managers who are fully resident in the island, across private equity, hedge funds, debt, real estate and crypto. These managers are bringing a real depth and diversity to our industry, at a time when questions around substance are never far from the agenda. Vitally, they are also providing some excellent opportunities for further diversity in career choice for our school leavers and graduates.”
Mr Byrne pointed to challenges faced by the industry: “The industry has faced a number of significant challenges over the past year. Brexit continues to be one area of uncertainty but it has not had the impact on our industry that might have been feared. In fact, since Brexit we have seen some of the largest funds ever raised in Jersey – Softbank’s Vision Fund, CVC Fund 7, and Nordic 9 to name just a few.
“A key question around Brexit has been how we bring to life the Jersey proposition for both EU and non-EU investors. It is vital that we continue to develop clear and compelling messages, in particular in relation to the opportunity afforded by our private placement regime. There are now close to 150 alternative fund managers going to market through private placement in Jersey, with almost 300 funds distributed into Europe through these channels, a 15% year on year increase.”
The JFA chairman also emphasised the importance of innovation for Jersey’s success: “Product innovation remains key to how we stay on top. With that in mind we look forward to shortly welcoming onto the statute books our Limited Liability Company (‘LLC’) and Jersey Registered Alternative Investment Fund (‘JRAIF’) products, which we envisage will help us maintain the momentum we’ve seen with JPF and LLP vehicles.
“We must continue to evolve and respond to the world in which we operate. If we can do that I remain confident of the future of the funds industry in Jersey.”