Guernsey Finance | Best Offshore Fund Domicile
Over the past year, total net asset values in Guernsey have remained steady, despite the global rollercoaster of economic headwinds and uncertainty.
The total net asset value of Guernsey funds at the end of Q3 2024 was GBP288.8 billion, with closed-ended funds representing GBP238.8 billion and the open-ended sector making up the remaining GBP50 billion.
Independent fund research company Monterey Insight’s latest Guernsey Fund Report found that, as has been the case in previous years, private equity and venture capital (VC) funds remain the most popular asset classes by AUM. Guernsey stands strong as the premier jurisdiction for European venture capital funds, with twice as many funds raised in Guernsey during 2022-2023 as compared to the next most-popular jurisdiction.
Globally, VC fundraising conditions are expected to improve as investor appetite for innovation and entrepreneurial investments increases, with AI, technology and health assets giving the sector a boost.
This global outlook has been mirrored within Guernsey’s fund sector. This year has seen the launch of an AI-powered investment fund domiciled in Guernsey, as well as the first tokenisation of a Debt Transaction for a UK Bank by Ctrl Alt, which was successfully completed within Guernsey’s regulatory framework.
The start of 2024 also saw the release of a report by Frontier Economics which found that Guernsey channels an ongoing GBP57 billion worth of international capital flows from around the world into the UK, which is three times the estimated cost of the Crossrail project.
This is important partly because of what that funding is used for – infrastructure projects, financing business through private equity, and property investments. But this is also important in terms of the wider context for the UK’s inward investment, because funding through Guernsey has been growing at approximately 14% per year since 2020.
Not only that, but Frontier Economics estimates that the social value for the UK from investment via Guernsey is worth GBP3-4 billion; This contributes to improved infrastructure in the energy, health and education sectors, and more extensive social housing stocks.
This value is spread across all four nations of the UK, with funds such as the NextEnergy Solar Fund bolstering investment into renewable assets and assisting in the government’s goal to triple solar power by 2030.
Guernsey continues to lead in the sustainable finance space, having launched the world’s first green fund regime in 2018 with the Guernsey Green Fund, which currently has AUM worth GBP5 billion.
As we move into 2025, we are positive about Guernsey’s leading reputation in sustainable finance, and the island’s tried and tested environment for investment and funds. There are a range of fund structures available in Guernsey with different levels of regulatory oversight, offering flexibility, global access and speed to market. The island’s fund sector is supported by a pragmatic and flexible regulatory environment and a breadth and depth of professional expertise.
At Guernsey Finance we will continue to demonstrate the strong relationship Guernsey has with the UK as an integral part of the British family, as well as furthering our island’s reputation in key markets like the US, South Africa the Middle East and Asia.
If you would like to learn more about Guernsey’s funds environment, head to our website at www.guernseyfinance.com and save the date for the Guernsey Funds Forum 2025 on 20 May 2025.
