1. Private Structure
A leading London-based property developer wishes to raise £7 million of capital from a few associates to acquire distressed property assets in the Westminster area of London.
Solution
- Establish a Jersey company
- Investors become shareholders in the company
- HFSL appointed to provide company and fund administration service
- Shareholders’ agreements in place
- Two independent directors appointed to the company to ensure robust corporate governance
- Appointment of an external auditor for additional oversight
- Property Management Agreement between company and developer
2. Hotel Development
A UK-based entrepreneur wishes to raise £10 million of capital from investors to part-fund the development of a hotel which will be operated by a leading hotel brand. Investors will share in the uplift of the property and will enjoy and income from the operating profit of the hotel for 15 years. The entrepreneur wishes to repeat the initiative in other centres on the same basis.
Solution
- Establish a Jersey protected cell company (PCC) and, within that, a protected cell (PC) for the first hotel
- Investors become shareholders in the PC
- A COBO-only permit is issued by the JFSC due to the non-diversification of risk of a single asset
- HFSL appointed to provide company and fund administration service to the PCC
- Three independent directors appointed to the company to ensure robust corporate governance
- Appointment of an external auditor
- The PC engages through formal agreements with counterparties to facilitate the hotel development
3. Establishment of an Investment Management Business
A UK-based investment professional wishes to establish a new investment management company with the backing of a few partners. He wants to do this on a low start-up cost basis, build up an audited track record over a 12 month period, and then scale up the capability to raise external investor capital. His focus is on listed securities, primarily in property and alternative assets.
Solution
- Establish a Jersey company
- Seed investors become shareholders in the company
- HFSL appointed to provide corporate and fund administration service
- Shareholders’ agreements in place
- Two independent directors appointed to the company to ensure robust corporate governance
- Appointment of external auditor to audit investment performance
- Quarterly board meetings
- Monthly valuations using independent pricing source
- Investment Management Agreement between the company and the UK Investment Management LLP
- Administer the company on the same basis as a large retail fund structure