Establishing your first alternative investment fund – which Island in the sun?

It is that time of year when many in the alternatives investment industry in Europe head off on vacation for a couple of weeks rest and relaxation. Whether chilling out by a pool or enjoying some fresh mountain air, this is often an opportunity to grab some time for strategic thinking – which in many cases involves planning the next career step. For some, that next step may be a move within an existing organisation or to a competitor. For others, thoughts may turn towards setting up in business on one’s own. If you fall into the latter group, establishing your own fund management operation or investment fund may be your goal. Whilst the tropical climes of the Caribbean hold a certain attraction as a domicile for new ventures such as these, there are credible alternatives far more convenient for those living in or near the mainstream European financial centres – and which also provide beautiful sunsets without the need for long-haul travel! One such location is the Channel Island of Guernsey. The Island has long been regarded as an attractive domicile for alternative investment vehicles. Open ended funds, including hedge funds and other “liquid alternatives” were the foundation upon which the fund servicing industry originally developed, and still make up a substantial proportion of the assets under management and administration. In recent years, the private equity, venture capital and real estate sectors have flourished – recent figures released by the GFSC note 1 show that the value of funds under management and administration on the Island grew for the seventh consecutive quarter and now stand at GBP 266...