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. â&#x20AC;&#x2DC;Start-up fundsâ&#x20AC;&#x2122;, 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.