Looking After your Very Private Funds
Private capital has become an increasing source of funding and many families and family offices are giving consideration to the formation of fund structures as a means through which to hold, manage and invest family wealth.
Acting as a closed-ended structure set up for a specified group of investors. The units or shares of the structure are only accessible by participating investors or by wealth structures administered for them and cannot constitute an offer to the public.
A JPF is a private investment fund involving the pooling of capital raised for the fund and which allows investors to risk spread. JPF would normally have at least two investors pooling their capital and a number of assets being acquired, such that there would be “risk spreading”.
Very Private Jersey Private Funds are popular with wealthy families and investment members who are interested in:
- Structuring the purchase of a specific investment with a view to bringing in co-investors.
- Pooling family wealth in a transparent and equitable way.
- Facilitating the retention and continued enjoyment of ‘heirloom’ assets.
- Consolidating a potentially diverse portfolio of assets into a single holding structure.
Very private funds may take various legal forms, with private companies. Cell companies and limited partnerships among the most favoured. The choice of form will depend principally on the proposed use of the structure and considerations such as flexibility, limitation of liability and tax efficiency.
There are some restrictions in that the fund cannot be listed, is only open to professional investors or eligible investors (generally experienced investors, persons or person who satisfy certain net worth criteria). Retail investors are excluded from investing. The maximum number of investors at any one time in a Very Private JPF is 15.
In Jersey, a Very Private JPF can be established quickly and with few of the regulatory requirements that apply to larger or publicly offered collective investment schemes.
- Establishment of a Very Private Fund structure
- Fiduciary services
- Administration services
- Consolidated reporting & accounting
- Tax compliance & reporting