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Set up Guernsey Investment Fund

Set up Guernsey Investment Fund

Investors who open a Guernsey investment fund have access to a well-developed market that enjoys a good regulatory regime. The wide range of investment vehicles, access to fund managers and fund experts, as well as the ability to easily set up a hedge fund in Guernsey, are important advantages.

Our team can give you more information on matters concerning private equity in Guernsey, general company formation issues, as well as trust formation.

You can also reach out to our partners if you are interested in matters related to Jersey investments, such as how to set up a trust in Jersey, or if you are interested in setting up a business in Jersey.

Main issues to consider for investors who set up a fund in Guernsey

The Guernsey Financial Services Commission (GFSC) offers a flexible and attractive regime for the creation of investment funds, and as a result, it has developed significantly over the years.

Guernsey is a large offshore financial centre, and it has a notable fund industry. Some of the main issues for investors to consider opening a hedge fund in Guernsey, or other types of funds, include the following:

  • the regulatory approach is flexible and efficient;
  • fund domiciled in this location are administered by a licensed Guernsey company;
  • funds are either registered or authorized with the Guernsey Financial Services Commission;
  • the location is tax neutral;
  • investors have access to different fund vehicle types, as well as a location advantage, being located close to the UK and the rest of Europe.

Types of legal structures used for a Guernsey investment fund

A fund in Guernsey can be structured as a company, a limited partnership, or a unit trust. Our team briefly lists some issues worth taking into account when choosing the structure:

  • a company in Guernsey is incorporated as per the Companies; investors who set up a fund in Guernsey in this manner will not need a minimum capital for the company;
  • it should be noted that the unit trust is not a separate legal entity;
  • a limited partnership is incorporated under the Limited Partnerships Law; investors who open a Guernsey investment fund using this structure will comply with the need to have one general partner (who is liable), and one limited partner (with limited liability);
  • a limited liability partnership can also be incorporated and, in certain respects, this offers certain advantages for those who set up a hedge fund in Guernsey, or another type of fund, as it has a separate legal identity from its founders.

If you are also interested in company formation in Jersey, not only Guernsey, our team can answer your questions.

Guernsey fund statistics

Investors who wish to set up a Guernsey hedge fund have a series of advantages, as already highlighted in this article.

Our agent specializing in company formation in Guernsey highlights some of the statistical data made available by the Guernsey Investment and Funds Association:

  • in May 2024 there were 1,400 funds under management and administration; investors who set up a hedge fund in Guernsey can rest assured that they will have access to proper fund management solutions;
  • the total value of funds that were under management in Guernsey the same month was £289.9 billion.

Investors who wish to know more about the Guernsey hedge fund can reach out to our team. We also offer information about company formation in Jersey.

As part of our other services, our partner lawyers and specialists can also answer questions about how to immigrate to Jersey, for those investors who are interested in relocation.

Contact us for more information about the Guernsey investment fund, as well as to receive details about all our services.