Written by
Dowgate Wealth
There is a saying in the
Launching and then floating an investment company with a specialist approach to
The Dowgate team and clients' capital has been committed alongside external investors to lay the foundations for capitalising on inefficient markets in the
Solving the problem and floating at a modest launch size as a platform to scale over time has really been made possible by the Guernsey investment community's flexibility and capability. The key benefits we have discovered were:
1) Guernsey's heritage in closed ended structures with specialist strategies,
2) The island's high regulatory standards,
3) quality of the non-executive and advisory network and
4) fiscal policy
Guernsey's 50-year heritage in closed ended investment structures and private equity style mandates was a key part of the decisioning tree, a specialism in alternative funds that has accelerated over the past two decades.
Secondly, Guernsey's close regulatory overlap with the
The Island's quality of non-executive network has, in our experience, facilitated the establishment of a board that could set up an investment company and float within 6-months, which is no mean feat. They too have the skills to now be ready to steward our shareholders' capital as we seek to build out an investment company. The potential to source a board with backgrounds working for the likes of
Governance is rightly under increasing focus and high-calibre boards of diverse skill set and depth must be a primary focus for investment companies. This has been complemented with the island's diverse advisory community that has been built up over the island's 50 years in closed ended structures - the level of consolidation interest in these advisers is testament to their market position.
Finally, Guernsey's tax treatment of investment companies can allow managers to deliver a more efficient cost structure for clients by reducing tax leakage. The fact that Guernsey has a zero rate of corporate tax as standard, no withholding tax on dividends paid, no capital gains tax, no inheritance tax and no indirect sales taxes, can allow for a more streamlined approach to an investment company's cost base and investment performance, allowing the structure to be competitive with that of a
It was never going to be enough to execute a float in the current market conditions to just try and get 'involved', it required commitment from all parties, and the granite-based island of Guernsey has proved to be a rock-solid foundation for such a move. Dowgate are very grateful to the island and its talent pool, and most importantly have very quickly become rather taken with the place.
For more information about Guernsey's finance industry please visit www.weareguernsey.com.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
Guernsey Finance
GuernseyFinance
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GY1 3PN
GUERNSEY
Tel: (0)1481720071
Fax: (0)1481720091
E-mail: Rosie@weaerguernsey.com
URL: www.weareguernsey.com
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