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A fund offering investment opportunities to island innovaters and entrepreneurial companies will be an "economic enabler" for Guernsey.
The Guernsey Investment Fund will invest in projects and businesses which have a Bailiwick of Guernsey focus, or which may benefit directly or indirectly the development of the island.
Its aim is to deliver long-term capital growth to its shareholders, which includes the States of Guernsey which has committed to investing up to £25m.
The States of Guernsey said the launch of the fund should be "hailed as a significant milestone for Guernsey's economy, signalling that the island is very much open for business".
The Policy & Resources Committee, which has delegated authority over the States of Guernsey’s Investment Reserve, agreed to invest its £25m on the basis that Ravenscroft would secure additional funding from the private sector.
Millions of additional investment has now been raised.
Fund demonstrates "Guernsey walking the walk" - Deputy Gavin St Pier
"The launch of the Guernsey Investment Fund, and government’s substantial seed funding of it, marks an exciting day for all those involved in business. We are determined to stimulate growth and we are committed to supporting business innovation," Deputy Gavin St Pier, President of P&R, said.
"Our expectation as primary investor into the Fund is that it will achieve a significant return on our investment reserves for taxpayers and serve as an economic enabler. We have worked with Ravenscroft to set up the Fund to operate at arm’s length of government, managed by professionals with an independent three-person board appointed to have overall responsibility for investment decisions. Neither politicians nor civil servants will be involved in making investment decisions."
This independent board has been appointed to have overall responsibility for the management of the Guernsey Investment Fund, each cell and its respective portfolio.
Chairman Gilbert Chalk will be joined by John Hollis, who has been a non-States member of the Guernsey Treasury & Resources Board and the Guernsey States Trading Supervisory Board, and Mel Carvill, a director of a number of global financial services companies.
"The Guernsey Investment Fund is a significant source of new finance for technology and innovation which will provide Guernsey with a potentially wide and lucrative window on new leading technologies," said Mr Chalk.
"The board is honoured to be given the opportunity to launch the fund which we believe will stimulate growth, generate employment opportunities and diversify the tax base. It’s fantastic to see that there is already a number of interesting projects which are looking for investment."
"This is something I have been talking about for some time, so I am pleased that it has finally come to fruition," Deputy St Pier continued.
"This significant investment from government and other investors in the Bailiwick serves as a demonstration of the confidence that exists in our economy. The Fund represented a good investment opportunity for government’s reserves but has the dual benefit of supporting business, jobs and the wider economy. We often say that 'Guernsey is open for business'. This is an unequivocal example of us now walking the walk."
Ravenscroft and States worked together to come up with Fund idea
The fund, which will be managed by Ravenscroft, may be made up of a number of protected cells - a corporate structure in which a single legal entity is comprised of a core and several cells that have separate assets and liabilities - with the technology and innovation cell being the first to launch.
Property and infrastructure cells are being considered for the future. The intention is that each cell will be fully invested within five years with an intended realisation within 10 years.
Jon Ravenscroft, Group Chief Executive Officer, Ravenscroft said: "The idea of the Guernsey Investment Fund came about through discussions between the States of Guernsey and Ravenscroft. The launch is the result of months of hard work by a whole team who share a passion for Guernsey’s future prosperity."
"Ravenscroft has proven expertise and experience in investing in local business. We are incredibly proud to have played an important role in the success of many well-known Channel Islands’ companies and want to use that knowledge to help nurture new and growing businesses."
Above: Jon Ravenscroft.
MXC Advisory Limited has been appointed as a consultant to Ravenscroft in relation to sourcing and managing investments for the technology and innovation cell.
MXC is a subsidiary of MXC Capital Limited, an investment and advisory business specialising in investing in technology companies and quoted on AIM. MXC Guernsey Limited, also a subsidiary of MXC Capital Limited, has committed to invest up to £5m in the cell.
The Fund has dual objectives:
Pula Investments Limited, the family office of Ravenscroft’s chairman Stephen Lansdown, has also made a commitment to the technology and innovation cell. Further fundraising will be undertaken ahead of additional cells being launched.
Investments will only be made after thorough due diligence has been completed and only then with the approval of the independent board of directors of the fund.
"We have already had a number of enquiries from parties interested in applying for funding. At this early stage, we don’t know where the demand will come from and the fund has been established to help those innovators who require only thousands of pounds and those entrepreneurial companies who need considerably more. The most important detail is that they have a proposal which has untapped but achievable potential," said Mr Ravenscroft.
International Administration Group (Guernsey) Limited has been appointed as administrator, PricewaterhouseCoopers (CI) LLP as auditor and Ferbrache & Farrell LLP as legal counsel.
Anyone interested in making an application for funding can contact Ravenscroft by emailing gif@ravenscroftgroup.com.
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