Private Equity Drives Value of Jersey Funds Business To Record Levels

The value of regulated funds being administered in Jersey rises to a record level of almost £300 billion at the end of 2017 driven primarily by a rise in private equity business, according to the latest figures to be collated by the Jersey Financial Services Commission (JFSC) and published by Jersey Finance.

In the final quarter of 2017, the total net asset value of regulated funds being serviced through Jersey rose by 10% over the quarter and by 12% year-on-year to stand at £291.1 billion (as at 31 December 2017), the highest value ever recorded. This growth was driven by the alternative asset classes, which increased annually by 13% to represent more than three quarters (77%) of Jersey’s total funds activity.

Within the alternative asset classes, private equity fund values performed particularly strongly, rising by almost a third year-on-year (30%) to stand at £82.7 billion – the second consecutive year private equity has risen by that level. Hedge fund values increased by 6% to £50.7 billion, real estate rose 2% to £37.5 billion, and the combined total of infrastructure, credit and debt funds rose by 7% to stand at £50.6 billion.

“On a macro level, these are uncertain times but the indications are clear – Jersey is seen as a forward-thinking jurisdiction that can provide first-rate standards of regulatory oversight, that is highly focused on supporting alternative fund managers, and that can offer an effective platform for generating better returns,” Jersey Finance CEO Geoff Cook commented on the figures in a statement.