Guernsey Strong in Private Equity

Nick Parmee

4 September 2008

New figures show that in the second quarter of the year the value of private equity funds in Guernsey grew by nearly £1 billion ($1.78 billion or 2.5 per cent) to reach £36.2 billion. This is despite market conditions that have seen amounts raised by private equity funds across Europe fall by some 10 per cent this year.

The Guernsey promotional body, Guernsey Finance points out that the management of Guernsey-based IPES – backed by private equity firm RJD Partners – is buying out its backer, a provider of dedicated private equity administration services for in excess of £20 million.

Peter Niven, chief executive of Guernsey Finance, believes that the listing of the $5 billion Guernsey limited partnership KKR Private Equity Investors on the Amsterdam Euronext has been the largest single contributor to the island’s recent success in the asset class.

He says that the move highlights that Guernsey is 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 regulator has ruled that there is already adequate home supervision. This puts Guernsey on the map internationally and particularly in the US.