The launch of the Jersey Limited Liability Company (LLC) structure this month can play a key role in supporting the growing volumes of pan-Atlantic alternative fund flows, according to JTC’s Head of Institutional Client Services in Jersey, Helier Le Main.
The new LLC legislation was approved by the Jersey authorities last week (7th February) with the structure coming into force on 14 February, adding further optionality to Jersey’s range of fund regimes.
Modelled on existing LLCs in other locations, the Jersey LLC has been designed to be familiar in particular to US private equity, venture capital and other alternative fund managers – but will offer the structure in a European time-zone setting, making it a unique proposition for managers.
Offering a structure with its own legal personality and with the option of electing for it to be a body corporate, the Jersey LLC benefits from flexible governance arrangements and a simple registration process, whilst there is no requirement for the inclusion of Jersey resident members or managers (subject to regulatory and economic substance requirements).
Crucially, the Jersey LLC will also provide another avenue for managers to access EU investor capital through private placement via Jersey, without the need for full onshore AIFMD compliance.
Commenting on the launch of the new structure, Helier Le Main said:
“At a jurisdictional level, Jersey has seen its volume of funds business with the US double over the past five years according to Monterey, as managers have sought reliable, cost-effective ways to pursue EU-focused strategies and this trajectory is expected to carry on. The LLC will meet a definite and specific need in that context, being a familiar structure in a reliable and well respected European location.
“More widely, we are seeing a wider trend for US managers to be looking at their route to market when it comes to the EU, with vehicles being launched in locations such as Dublin and Luxembourg to meet the needs of the US market too. In this sense, this development in Jersey will add another option for managers with the Jersey LLC set to play a pivotal part in helping pan-Atlantic funds business to continue to grow.”
To find out more about the benefits Jersey and its range of funds, please get in contact with Helier directly.
We have included a link to the Jersey Finance factsheet on the LLC here: