BL Magazine Issue 65 November 2019 - January 2020

Page 36

Start-up funds

Home sweethome

Small, newly established funds in search of a well-regulated home offer a growing business opportunity for Channel Islands corporate services firms. But they need to take it before competitor jurisdictions catch up

Words: Richard Willsher

36 November 2019 -January 2020

TRADITIONALLY, START-UP funds have often been domiciled in Caribbean jurisdictions such as the British Virgin Islands and the Cayman Islands. This has been largely down to their light-touch regulatory regimes and low-cost structures. But this has changed over the past couple of years as market demand has shifted. With scandals such as the Panama Papers shining a public spotlight firmly on the morals of the wealthy, private investors are looking to place their money in well-regulated jurisdictions. ‘Start-up funds’, which tend to cater for this market, are typically those that are established by new, first-time managers or promoters who have not established a fund before. Start-up managers have usually had a background with an established investment bank or fund manager and have now decided to go it alone or with former colleagues.