By Connie Helyar Managing Director International Private Equity Services Ltd Private Equity Funds in Guernsey

Which Jurisdiction for Fund Formation? How do you decide where to base your fund? Bermuda, BVI, Cayman, England, Wales, France, Germany, Luxembourg and the Netherlands… Take advice from your professional Adviser? Make your own decision?

Choosing a Jurisdiction Proximity Transport links Time zone Language

Track record of jurisdiction Recognition by target investors Needs clearly crafted, modern limited partnership and company law Fiscal transparency Choosing a Jurisdiction

Location

Guernsey Funds Industry – The Facts Booming fund industry! Euro130 billion under management Over 600 funds & 1,200 sub-funds 30% growth p.a. in funds – dominated by private equity No less than 45 fund administration companies

Most of the world’s biggest private equity investors invest in Guernsey funds Highest standard of regulation Fast track authorisation process Specialist private equity expertise! Guernsey Funds Industry – The Facts

Promoters – Guernsey Private Equity Funds Alchemy Permira Terra Firma ABN Amro BC Partners Apax Partners Nomura Macquarie Bank Electra Europe Greenpark Capital PPM Access Capital Partners Baring Vostok Polytechnos Hg Capital Coller Capital PAI

What else do Private Equity Fund Promoters want? Promoters – Guernsey Private Equity Funds

Limited Partnership Structures No stamp duty on transfers of interest Limited partners can take some management role No limit on limited partner numbers Can select legal personality & still be fiscally transparent No disclosure of identity of limited partners

Is there anything else that Fund Promoters look for? Promoters – Guernsey Private Equity Funds

Excellent Support Services Good corporate governance Expert directors Quality corporate secretarial & compliance support Professional expertise Value added service

Tax Exempt Companies Unit Trusts Protected Cell Companies (“PCC’s”) Shortly introducing Independent Cell Companies (“ICC’s”) Other Guernsey Structures

Features of PCC’s Each cell ring-fenced in the event of liquidation PCC’s now being utilised for unique private equity schemes Company can be migrated to Guernsey & assets split into separate cells ICC’s to protect trading between cells

800 years of fiscal independence No capital gains tax No VAT No Inheritance Tax No tax on disposal of limited partnership interests Tax transparent limited partnerships

Guernsey Proposed Reform Working party to review the investment fund industry Fundamental changes to system of regulation expected Reduce number & scope of funds requiring regulation Tax reforms in 2008 Outcome likely to underpin Guernsey’s pre-eminent position in financial services

Its own separate Legal System Its own Government A robust but not onerous Regulatory System Qualified Investor Fund regime Has its own Stock Exchange Other Benefits of Choosing Guernsey?

The Channel Islands Stock Exchange set up in I998 Not bound by European Union Listing Directives considerably more flexible in its approach Classified by FSA as a “designated investment exchange” Recognised by the US SEC as a “designated offshore securities Market” Offers a competitive pricing structure The Channel Island Stock Exchange

Has an excellent business reputation Is competitive and always ahead of the game Offers a high level of knowledge & expertise Has an excellent infrastructure Is 35 minutes by jet to and from London Gatwick Has quality healthcare, schools and lifestyle If all that isn’t enough…

A temperate climate Superb restaurants Fantastic people! And what’s more…

A great place to be… stand 6