Fund Structuring: Shariah Compliant Funds In Guernsey

Guernsey has traditionally been a favoured domicile for Shariah compliant structures. In an article for IFC Review,  Carey Olsen Counsel Andrew Tually and  IQ-EQ Chief Commercial Office Jacques Vermeulen discuss the principles underpinning Shariah-compliant investments and some particular fund structuring techniques for Shariah investors.

We are seeing renewed interest in these types of structures – particularly from managers who have not previously targeted Shariah investors - as sovereign wealth funds, pension funds and HNW individuals from the Middle East and South East Asia diversify into alternative assets like private equity, and traditional or "western" managers look to expand into the Shariah market by establishing bespoke feeder or parallel funds in Guernsey which offer a Shariah compliant route into their conventional funds. With the introduction of new fast-track regimes to attract overseas managers/funds to Guernsey, we hope to see more promoters