Jersey LLCs – Key Points For US Managers And Investors

Introduction

Limited Liability Companies ("LLC") are a familiar structuring tool for US managers and investors, and the introduction of the Jersey LLC is part of a strategy by the jurisdiction to increase its appeal to the US market.

The key advantage of the LLC is that its owners have limited liability protection – their personal assets can be protected from the debts and liabilities of the LLC. In financial services, both the Cayman Islands and the US state of Delaware have developed popular LLC regimes that are widely used for investment funds, for financing purposes, or in holding company structures.

The introduction of the Jersey LLC, and amendments to the rules around Jersey LLCs, is aimed at the US market, as part of a strategy of making the Island relevant to US managers and investors. Jersey Finance – the industry's promotional body – report that since it opened its office in New York, the number of US-originated fund structures has grown 61%,