18 April 2017

Carey Olsen sees strong interest in Guernsey's new Private Investment Fund Regime

Carey Olsen's corporate team in Guernsey has been the first to establish a Guernsey Private Investment Fund (PIF) since the new class was introduced.

Partner Christopher Anderson led the Carey Olsen team advising specialist private investment firm Cairngorm Capital Partners on the successful £107.5 million final closing of its second fund, Cairngorm Capital II.

Cairngorm II is the first Guernsey fund to be established as a PIF since the Guernsey Financial Services Commission (GFSC) licensed and registered PIFs class was introduced on 16 November 2016.

The team, including senior associate John Scanlan and associate Colin Calvert, advised on the Guernsey aspects of the launch of Cairngorm II working with international law firm Fried, Frank, Harris, Shriver & Jacobson who advised on English law matters.

The new PIF regime dispenses with any formal requirements for information particulars (such as a prospectus) in recognition of the special relationship which may exist between managers and investors. This significantly reduces the cost and processing time for launching a fund.

Advocate Anderson, said: "We are anticipating a significant demand for PIFs given the number of funds established in Guernsey which are essentially private. As Guernsey's market leading legal adviser to funds, our lawyers were closely involved in the development of this new product." 

He added: "There have already been a number of enquiries by managers looking to establish more PIFs, which means that the fund industry has every reason to be excited about this new product."