Jersey set to attract US fund managers

By Nick Solt, Managing Director, Moore Stephens Fund Services

New legislation in Jersey that will enable the establishment of Limited Liability Companies (LLCs) is set to make the island a more attractive proposition for pan-Atlantic business.

US institutions, and fund managers in particular, view LLCs as an appropriate structure for a wide variety of funds. Alternative investment Funds in particular are often structured as an LLC by US advisers and managers. Their familiarity with LLCs means that they can now view Jersey as a more natural domicile for their fund structures and give them a familiar option for cross-border structuring.

More than two thirds of all new transparent business structures formed in the US each year are LLCs which are often referred to as a ‘hybrid’ structure; combining the flexibility and privacy of a partnership with the protective limited liability of a company. Their popularity is in part down to the fact that they can be used in a variety of different ways: in addition to fund structuring they are often used for simple businesses run by one or two people right up to holding vehicle for large public company structures.

Geoff Cook, CEO of Jersey Finance said recently: “We are confident that the Jersey LLC can provide an attractive proposition for US-based hedge fund managers, particularly in operating master-feeder structures. We anticipate strong growth in this area, whilst we also believe the LLC can be a really positive addition to our suite of vehicles more widely to enable better international structuring.”

The new law was passed on the 11 September 2018.