Guernsey Private Investment Funds – Key Advantages
Introduction
Guernsey Private Investment Funds (PIFs) are investment funds which are designed to offer a more flexible and streamlined approach to fund structuring and administration for private investors. They are a popular option for private equity investors, high-net-worth individuals and family offices seeking to establish bespoke investment funds.
Establishment, Administration and Regulation – Characteristics and Advantages
A PIF can be set up as either a closed-ended or open-ended fund, with no minimum investment per investor. They can be structured as limited partnerships, companies, or unit trusts, providing investors with a choice of different legal structures.
One of the key advantages of a PIF is the simplified regulatory framework which allows for a faster and more cost-effective set-up process compared to other types of investment fund. PIF’s are also exempt from certain regulatory requirements, such as the need to appoint a Guernsey-based custodian, which further reduces costs and administrative burdens.
All Guernsey PIF’s are subject to regulation by the Guernsey Financial Services Commission (GFSC), which ensures that they meet certain standards of transparency and accountability. The regulatory framework for PIF’s is specifically designed to be flexible and proportionate to the risks involved, which means that PIF’s can be established and managed in a way that suits the specific needs of investors.
In addition to these advantages, PIF’s also offer a range of investment options, including the ability to invest in a diverse range of assets, such as real estate, private equity, and hedge funds. This makes a PIF a popular choice for investors seeking to diversify their portfolios and access alternative asset classes.
General Features of a Guernsey PIF
Overview of general characteristics of a Guernsey PIF;
– Unlimited offers can be made but no more than 50 legal persons as investors
– Compatible with AIFMD and UK private placement regimes
– No requirement for Regulatory approval of the promoter
– No requirement for offering document / private placement memorandum
– Audited accounts required
– Guernsey licensed administrator, such as Dixcart, must be appointed
– Cannot be listed
– The GFSC generally aim to approve PIF applications within 24 hours from receipt of the application.
Conclusion
A Guernsey Private Investment Fund is a flexible and efficient option for private investors seeking to establish a bespoke investment fund that meets their specific needs and requirements. Offering a streamlined regulatory framework and a range of investment options, PIF’s are a valuable tool for private equity investors, high-net-worth individuals and family offices looking to grow and diversify their wealth.
For further information on Guernsey PIF’s and Dixcart’s highly competitive fees, and/or for advice regarding their establishment, on-going management and administration, please contact: steve.dejersey@dixcart.com or advice.guernsey@dixcart.com
Dixcart Guernsey (representing Dixcart Trust Corporation Limited and Dixcart Funds Administrators Guernsey Limited, registered Company Numbers: 6512 and 68952) hold a Full Fiduciary Licence and Guernsey Protection of Investors Licence granted by the Guernsey Financial Services Commission
