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According to the Q3 statistical bulletin published by the BVI Financial Services Commission (FSC), the islands’ financial regulator, a total of 27 limited partnerships were recorded in Q2 2014 compared to 16 in Q2 2013. That figure rose in Q3 to 36.
This is good news for the jurisdiction as it suggests that demand for GP/LP structures among private equity managers remains strong. Indeed, the BVI remains highly favoured among asset managers in emerging markets, not least Chinese asset managers looking to incorporate special purpose acquisition companies (SPACs) in the BVI.
Drake Fund Advisors is a specialist emerging markets fund administrator.
There appears to have been a real pick-up in interest in BVI segregated portfolio company (SPC) formations over the last 12 months. Many recent conversations with start-up managers seem to be about forming such structures according to Marie-Claire Fudge (pictured), head of Mourant Ozannes’ BVI funds practice.
A BVI SPC is a single legal entity containing a number of segregated portfolios. Under BVI law, only insurance companies or investment funds may be incorporated or registered as SPCs. An SPC may only be incorporated with the prior written consent of the BVI Financial Services Commission (the FSC) and must contain the
By James Williams – There’s a general air of optimism among the BVI’s fund practitioners. Although the average hedge fund recorded sub-four per cent, the lowest average return since 2011, there was nevertheless a clear uptick in trading activity, principally among some of the islands’ larger managers.
“Those with established funds attracted a lot more attention and interest and launched various offshoots of their flagship funds, which was a welcome development,” notes Grant Green (pictured), Managing Director, KPMG (BVI) Limited.
Howard Eisen is managing director and head of sales for Conifer Fund Services, one of the BVI’s leading fund
In many respects 2014 was a year of consolidation and possibly a sign of better things to come in the BVI in the view of Mara Spencer (pictured), Managing Director of ACE Fund Services. It was, she says, a period of stability during which certain strategy funds, in particular those with an FX slant, performed well.
“The portfolios we administer are quite varied. We work with funds that have different asset allocations and operate in a range of different jurisdictions so we see quite a diverse picture of fund activity. We saw a steady level of fund subscriptions for specific
The BVI has seen some good traction in the Approved Manager regime since it was introduced at the end of 2012. Whilst this has proved popular with start-up and small- to mid-sized managers looking for a lighter touch regulatory oversight from the local regulator, the feeling amongst the islands’ leading law firms was that a new fund product was needed to cater more specifically to this market sector.
To address this issue, Simon Schilder (pictured), Partner at Ogier and Chairman of the Securities, Investment Business and Mutual Funds Advisory Committee (SIBAC), has written a white paper currently being considered by
By James Williams (pictured) – It seems the decision by the BVI’s financial regulator, the Financial Services Commission (FSC), last year to extend the Approved Manager regime to managers running non-BVI funds, as well as those running managed accounts, was prudent. During the course of 2014, several of the islands’ leading law firms saw increased activity in managers applying for Approved Manager status.
“Over the last 12 months we’ve seen a number of clients looking to provide investment management services to managed accounts applying for Approved Manager status, as opposed to a Category 3E investment business license. The net effect
Jeff Sica, founder and Chief Investment Officer (CIO) of Circle Squared Alternative Investments (CSQ), has been appointed as a special advisor to the board of venture capital firm AITV.
Sica will now be part of a roster of what we believe to be are world-class subject matter specialists that AITV has assembled. In this capacity, he’ll provide the AITV investment team and, in some cases, the underlying portfolio companies, with strategic, financial, technological and commercial advice in an effort to help optimise returns for their investors. AITV developed this highly profiled and actively engaged network of collaborators ranging from fund
55% of private equity firms surveyed by Preqin at the end of 2014 stated they would deploy greater levels of capital in 2015, although 39% suggested it is more difficult to find attractive investments. Preqin’s Christopher Elvin comments:
2014 was the strongest year of private equity investments since the global financial crisis, yet the majority of private equity fund managers are looking to invest more this year. Preqin spoke to 260 firms* worldwide in November last year, and 55% claimed they would be investing a higher amount of capital in 2015 compared to last year. A further 35% of managers
Hedge fund industry profits in 2013 reached USD31.2 billion but poor performance in 2014 cut that figure by 30% to only USD21.9 billion, a loss of nearly USD10 billion, according to a Citi survey.
Institutionalisation of the hedge fund investor base has shifted the profitability ratios of the industry, Citi notes in the firm’s 3rd Annual Hedge Fund Industry Operating Metrics Survey. Profits derived from management fee revenues now equal profits from performance fee revenues in years like 2013 when managers meet institutional targets of 10% annual returns.
Citi’s report, formerly known as the Hedge Fund Business Expense Benchmark Survey,
BlueMountain Capital Management has held the first closing of the BlueMountain Summit Opportunities Fund II with approximately USD1 billion in capital commitments.
The Summit Opportunities Fund II will concentrate on high conviction investments across asset classes including corporate credit and equity, mortgage and asset-backed securities, real estate and private capital. It will focus on positions with excess risk premium associated with lower liquidity and heightened complexity. The fund's broad and flexible investment mandate will allow BlueMountain to pursue opportunities across its global platform and position for continuously evolving markets in both short-term trading and longer-term compounding investments.
This fund closing
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