Jersey: A Gateway to Europe for South Africa Fund Managers

Jersey–based fund managers are located in a ‘third country’ from a European Union (EU) perspective and therefore the full scope of the Alternative Investment Fund Managers Directive (AIFMD) does not apply. This means that the Jersey fund manager may not be required to comply with certain more onerous elements of AIFMD, such as reporting and disclosure of remuneration. Importantly, the benefits of a Jersey based manager can apply wherever the funds themselves are domiciled, be it in Jersey or elsewhere.

Put simply, access to Europe through the National Private Placement Regimes (NPPR) using a Jersey manager is a well-established model offering clear advantages.

NPPR is a recognised path and a model that has worked, and continues to work extremely well. As at 31 December 2024, a total of 448 funds were being marketed into the EU through Jersey by 240 alternative investment fund managers.

Figures from Preqin show that 55% of European investors in alternative real estate and 62% in private equity are based in the UK, Switzerland or the Netherlands. Only one of these three countries is now in the EU, therefore the ongoing onerous regulation and expense in order to access only one or two EU Member States is disproportionate when a simpler alternative is available. The reality is that few managers need blanket access to all EU Member States. In cases where they do, then an onshore option works best, but with European Commission figures suggesting that 97% of managers actually market to three EU markets or less, then private placement offers a very credible, fast, cost-effective and sensible option.

For decades, Jersey has set itself apart as a reputable, centrally located jurisdiction for investors from key global markets. Jersey provides excellent third country access into the EU market through the use of NPPR by non-EU countries.