The Future of Funds Looks Bright for Guernsey
24 May 2023
Earlier this month, Director Abbie Hewlett attended the Guernsey Funds Forum. Here Abbie discusses how jurisdiction choice was a hot topic throughout the event.
Earlier this month, Director Abbie Hewlett attended the Guernsey Funds Forum. This annual Guernsey Finance event brings together fund industry professionals and this year it featured a keynote address by Michael Moore, Director General of the British Private Equity and Venture Capital Association, as well as a number of panel discussions and workshops.
Here Abbie discusses how jurisdiction choice was a hot topic throughout the event.
The theme of the forum this year was, ‘The Future of Funds’ and it became clear that high on the list of factors for fund success is location. Choice of jurisdiction is key; where your fund is domiciled and therefore its structure really matters - and this is where Guernsey really comes into its own.
Guernsey as a financial jurisdiction and fund domicile location offers a truly unique blend of positive factors which make it a market leader and key partner for UK venture capital and private equity markets.
For investors, security of domicile should not be a question they need to ask, they need to feel confident the jurisdiction’s reputation is beyond reproach. Equally, fund managers need to stay focused on deal flow and nurturing their portfolio and don’t want to waste time explaining the domicile benefits.
Family-owned and independent, we are proud to be based in Guernsey because not only is it a beautiful place, but it also offers substantial benefits for our clients as a jurisdiction. It is world renowned for being secure and business friendly as well as an agile, innovative environment for new opportunities.
Panel experts throughout the event agreed that, as a long-term leader in the alternative asset sector, Guernsey has earned its reputation of trust, and investors the world over are familiar with the island. Its regulator is pragmatic whilst also working to the highest standards.
Home to world leading financial service providers, Guernsey has a huge pool of talent with a wealth of experience. Combine this with a stable, independent legal system and you have an agile, well-regulated domicile able to offer cutting edge opportunities to investors – as well as easy access to UK and European markets.
A second hot topic of discussion was sustainability and a transition towards decarbonisation. The panellists described how many of the new, cutting edge technology based investment opportunities have a sustainable and ‘green’ focus, with Guernsey already a leader with a sustainable funds regime. This opens up a new, growing area of interest for investors who may be looking to diversify portfolios to include more sustainable options, support decarbonisation and elevate ESG as an investment priority. The island has a strong track record in this area, and it is home to a number of innovative funds investing in sectors like food-tech or forestry.
HFL is known for supporting innovative entrepreneurs, in fact, making an impact is one our core values. Our global client base includes founders, investors, individuals and families who share our dynamic approach to business and our desire to constantly evolve and embrace change.
We strive to create positive change for our clients and out community, and that’s not limited to the type of clients we work with. HFL has recently committed to reducing our carbon emission and are delighted to be partnering with Supercritical to achieve our goals.
However, even with this exciting and optimistic outlook, global economic turmoil had to be addressed as well. We have all experienced the volatility of the last year with global events having huge impacts on inflation, labour markets and interest rates. Combine this with the collapse of the US Silicon Valley Bank and it is clear to see the significant impact on venture capital and private equity markets. As we navigate these unpredictable times, discussion at the event provided yet further evidence that the value of a stable and predictable jurisdiction, such as Guernsey, cannot be underestimated.