Jersey For Private Equity Buyout Structures

As well as being home to many private equity and other funds, Jersey continues to provide a popular domicile for the acquisition structures used in private equity-backed buyouts of target businesses in the UK and elsewhere. In this briefing, we explore some common features and advantages of a buyout structure involving Jersey companies.

Structure

Private equity acquisition structures in Jersey often mirror those used in the United Kingdom, typically consisting of a newly incorporated 'stack' of companies including:

• Topco: the top company in the structure in which the private equity investor, any co-investors and the target's management team (some of whom may hold via a nominee company or employment benefit trust ("EBT")) receive shares.