Investing into nature: Jersey Fund for a Wilder World
The Jersey Finance report South African Fund Managers: Trends in Fund Domiciliation and Capital Raising provides useful insights into the factors that influence the choice of jurisdiction for fund domiciliation. The report findings are not only relevant to institutional investors (LPs) looking to capitalise on the investment opportunities the African continent has to offer, but are especially useful for private equity fund managers seeking to structure their funds and successfully fundraise from international investors.
One of the main drivers identified in the report that influence the decision to domicile is very much dependent on the LPs and their level of comfort with the jurisdiction. The report provides an interesting comparison between jurisdictions based on two key considerations, namely regulatory complexity and cost.
The report also alludes to the fact that South African fund managers are ahead of the curve when it comes to identifying and investing in opportunities across the African continent, particularly into retail, consumer, real estate and infrastructure investments. South African fund managers bring a level of maturity and sophistication to transactions given their experience and track record.
Given the need for economic recovery and building back better as a result of the Covid-19 crisis, it is important to continue attracting foreign capital to the continent, and for research reports like these to highlight the opportunities and channels to facilitate investment. Thank you to Jersey Finance and their research team for providing us with an insightful document.
With the focus on sustainable finance increasing, Jersey is again ahead of the curve, investing directly into biodiversity and nature that will benefit developing countries, including in Africa.
Launched in January, “Jersey Fund for a Wilder World” has as its objective effecting positive change on the restoration of global ecosystems, and is designed to give financial services firms in Jersey the opportunity to contribute a portion of their fees earned from sustainable finance workflows to a pooled central pot.
Contributing to the fund is voluntary, and is initially open to fund service providers, including administrators, law firms and accountancy firms, with the intention to ultimately open the fund up to a wider cross section of Jersey’s finance industry.
The inward investment of capital in the fund will contribute towards Durrell’s “Rewild our World” strategy, which undertakes projects aimed at reviving, restoring and rewilding diverse habitats around the world, from Jersey and the UK to Mauritius and India.
The launch of the fund forms part of Jersey’s wider objective of positioning itself as a global centre of excellence for sustainable finance, with Jersey Finance shortly due to set out a long-term vision and strategy for the ESG space.
It also builds on the Jersey Financial Services Commission’s consultation last year on enhancing disclosure and governance requirements for sustainable investments, Jersey being one of only seven pilot cities/territories taking part in the United Nations’ “United 4 Smart Sustainable Cities” initiative, and the Government of Jersey’s implementation of a Carbon Neutral Strategy.
Elliot Refson, Head of Funds, Jersey Finance, says: “I’m particularly pleased to be working with Durrell, which has such strong roots in Jersey but expertise and a reputation that extends right around the world, and to have already had such strong support from firms here in Jersey. This fund provides a fantastic opportunity for firms in Jersey to make a combined, clear and positive difference to natural environments around the world.”
Durrell will also assume responsibility for monitoring, evaluating and providing a comprehensive analysis of the impact of the investment. Dr Lesley Dickie, CEO, Durrell, adds: “Through the Rewild our World initiative, we have set our sights on delivering significant change to the fortunes of threatened wildlife through a positive and bold vision for conservation. By bringing together our own knowledge and experience of global conservation with the international expertise of Jersey’s financial services industry, this fund can play an important role in realising our long-term goals.” ■
“The Jersey Fund for a Wilder World provides a fantastic opportunity for firms in Jersey to make a combined, clear and positive difference to natural environments around the world.” Elliot Refson, Head of Funds, Jersey Finance