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COMMON QUESTIONS

What you need to know

This answers the most common questions from fund managers considering applying to The Fund Foundry and from sponsors and consortium partners looking to understand how the programme works. If your question isn't here, contact us at hello@guernsey-foundry.com.

About The Fund Foundry

  • The Fund Foundry is a structured 12-month programme for first-time and emerging fund managers launching a regulated fund in Guernsey. Five managers are selected per cohort and supported through GFSC authorisation and on to first close. The programme is operated by Foundry Partners LBG, a Guernsey-based not-for-profit, and is backed by a consortium of 26 service provider partners alongside Guernsey Finance and the States of Guernsey. Programme partners include JTC, IQEQ, Walkers, Bedell Cristin, Carey Olsen, Grant Thornton, Stephenson Harwood, Mourant, Imperium, Gravity Group. NSM, Butterfield, Tenn, Artemis, DataGardener, Fund Manager partners include Cazenove Capital, Hedosophia, Rocq Capital, Osney Capital, Whitestar capital, Yolo Investments

  • Selected managers receive:

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    • A £25,000 service voucher to use across consortium partners for legal, structuring, compliance, and administration support. The organisers estimate that, through additional reduced-fee arrangements from participating service providers, the total first-year benefit could exceed £75,000.

    • A one-day GFSC PIF registration pathway, from application to authorised fund in a single business day

    •  Access to the GFSC Innovation Sandbox and Concierge offering for relevant applicants

    • A structured GP mentor, matched from a senior industry practitioner, with regular 1:1 sessions throughout the 12 months

    • Access to the full consortium partner network with introductions to the right specialist at the right time

    • Peer cohort access - a small group of five managers working through the same journey simultaneously

    • Programme workshops and briefings covering fund structuring, investor relations, regulatory obligations, and operations

    • Warm introductions to prospect LPs from within the Fund Foundry Ecosystem

     

    There is no fee, no equity taken, and no carry charged. The programme's costs are met by the consortium and States of Guernsey backing.

  • The programme is operated by Foundry Partners LBG, a Guernsey-based not-for-profit. The Programme Lead manages day-to-day operations and is the primary point of contact for cohort managers throughout their 12-month journey. The Programme Lead works alongside Programme Directors who provide strategic oversight.

Why Guernsey?

  • For most emerging managers, Guernsey is the smarter choice. Independent analysis, including the Guernsey Investment Funds Association’s comparative study, puts the case clearly: 

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    • Speed to market: The GFSC's Private Investment Fund (PIF) regime allows a fund to go from application to authorised in one business day. Luxembourg typically takes significantly longer.

    • Cost advantage: Domiciling in Guernsey rather than Luxembourg can save €2–3m over a fund's lifetime. Administration, audit, regulatory, and AIFM costs are typically 20–30% lower, with zero VAT on services.

    • Regulatory credibility: Guernsey is OECD and EU whitelisted, FATF-compliant, and has bilateral co-operation agreements with all 27 EU Member States. 

    •  Market access: Guernsey funds can reach most professional EU investors through the National Private Placement Regime (NPPR). In practice, only 3% of AIFs are distributed to more than three EU Member States — meaning the vast majority of relevant investors can be reached by Guernsey funds via targeted NPPR (and without the need for the AIFMD marketing passport).

    • Tax efficiency: 0% corporate tax rate, no VAT, no withholding taxes on distributions to non-resident investors, no stamp duty, no capital gains tax.

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    • No mandatory authorised EU AIFM:  Under the Guernsey Private Investment Fund (PIF) regime, there is no requirement to appoint a full-scope authorised EU AIFM. This enables many managers accessing European investors via National Private Placement Regimes (NPPRs), rather than the AIFMD marketing passport, to avoid the associated regulatory and operating costs.

    • No mandatory AIFMD depositary: Under the Guernsey PIF regime, there is no requirement to appoint an AIFMD depositary. By contrast, EU funds managed by an EU AIFM under the AIFMD regime are generally required to appoint a depositary, resulting in additional ongoing operating costs. (Some jurisdictions may impose limited "depositary-lite" requirements when a Guernsey fund is marketed under NPPR.)

    • No annual subscription tax: Guernsey does not levy an annual subscription tax on fund net assets. By contrast, many Luxembourg alternative fund structures (including SIFs and RAIFs) are generally subject to an annual subscription tax of 0.01% of net assets, subject to applicable exemptions.

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    WORTH KNOWING

    For managers without a cornerstone investor in France, Italy, or Spain (where NPPR access is limited), Guernsey is almost always the right answer. Even where EU investor access is needed, a 'UK or Lux sleeve' parallel structure is an option — but in practice, data shows that investors typically choose the lower-cost Guernsey fund anyway.

  • No - and the concern is often overstated. Guernsey funds can market to EU investors in most Member States via NPPR under Article 42 of AIFMD. Analysis of actual fund data shows that 70% of EU fund assets are held in funds registered in just one Member State - the passport is expensive optionality that most managers never use.

  • The EU passport under AIFMD allows a fund manager based and regulated within the EU to market its fund freely across all 27 EU Member States without separate registration in each. To use the passport, a fund must appoint an EU-authorised AIFM and comply with the full AIFMD regulatory regime. This carries significant cost and compliance overhead.

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    NPPR (National Private Placement Regime) is the alternative route available to non-EU funds under Article 42 of AIFMD. It allows a Guernsey-domiciled fund to market to professional investors in most EU Member States on a country-by-country basis, registering in each jurisdiction where it intends to raise capital. The practical cost is low, typically £3,000–£5,000 per jurisdiction.

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    The NPPR works well for the vast majority of emerging managers. Data shows that only 3% of AIFs are registered for distribution in more than three EU Member States, and 70% of all EU fund assets are held by funds registered in just one Member State. The passport is an expensive option that most managers never use.

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    There are limited exceptions to NPPR including France and Spain your target investor base is concentrated in those jurisdictions, take specialist advice. For all other markets, NPPR is the practical and cost-effective solution.

  • Yes. Guernsey has been home to institutional-grade funds for over 50 years.It is one of the world’s leading funds domiciles: as of Q1 2026, over 1,400 investment funds were domiciled in the island, with aggregate assets under management and administration exceeding £272.8 billion. Guernsey-related investment businesses now manage or administer more than £1 trillion in assets globally.

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    Investors from 10 jurisdictions contribute 73% of the NAV of non-listed Guernsey funds. The jurisdiction is OECD and EU whitelisted and maintains international standards across tax transparency, AML, and economic substance. Guernsey is not an offshore compromise, it is a mainstream, institutional-grade funds domicile.

  • The Innovation Sandbox + Concierge is part of the GFSC's Digital Finance Initiative, launched in late 2025. It's designed to support firms exploring blockchain, tokenisation, AI-driven finance, or other innovative digital solutions, allowing them to launch products or services within a structured regulatory framework with tailored licence conditions. It demonstrates the GFSC willingness to talk to potential funds with novel ideas.

  • This has recently changed in Guernsey's favour. The British Business Bank's assessment criteria no longer prohibit entities within a proposed fund structure from being domiciled in offshore jurisdictions. Guernsey structures are now eligible for BBB-backed programmes. This is a relatively recent development and has not been widely communicated and it is an important change for UK-focused emerging managers considering Guernsey.

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    The BBB has stated, "We have welcomed discussions and we are open to Guernsey structures, and this is reflected in our current funds pipeline.”

The PIF Regime

  • The PIF is Guernsey's flagship fund structure for private capital. It is the regime The Fund Foundry is built around, and it is arguably the most manager-friendly regulated fund structure available anywhere. Key features:

    • One business day authorisation - from application submission to GFSC registration. This is not a rough estimate; it is the standard timeline.

    • Light-touch regulation - the PIF is a regulated product but without the heavy compliance overhead of full AIFMD-equivalent structures.

    • No mandatory audit - PIFs are not required to appoint an auditor. Funds can opt in to an audit if required.

    • No investor cap - no limits on investor numbers and number of offers, making the structure suitable for a much wider fundraise.

    • No mandatory licensed manager - there is no requirement to appoint a Guernsey-licensed investment manager. Where a manager or general partner does need a licence, that application runs in parallel and is fast-tracked on the same one-day timeline.

    • Flexible structure - PIFs can be open or closed-ended, and can use a range of legal structures including limited partnerships.

     

    2025 PIF RULES UPDATE

    The PIF regime was updated significantly in May 2025 under the Private Investment Fund Rules and Guidance, 2025. These changes expanded investor eligibility, removed the audit requirement, and removed the investor cap - making it even more suitable for first-time and emerging managers launching to sophisticated investors.

  • It means exactly that. Once a complete PIF application is submitted through the GFSC's online portal, the Commission targets a one business day turnaround for both the fund registration and any accompanying PIF manager licence. This is a formal feature of the regime, not an aspiration. For context, an equivalent Luxembourg structure typically takes three to six months. That speed matters enormously when you have an investor window, a deal pipeline, or a time-sensitive first close to execute.

  • A Qualifying PIF (QPIF) is open to Qualifying Private Investors (QPIs) - broadly, investors who can evaluate the risks of the strategy and bear the consequences of investment including total loss. This covers professional investors, experienced investors, knowledgeable employees, and those admitted at the discretion of a Guernsey-licensed manager or administrator. The criteria are investor-suitability-based rather than defined by rigid investor counts or minimum ticket sizes.

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    The administrator must obtain written acknowledgement from each investor confirming their understanding of the fund's regulatory status and investment risks.

  • No - there is no requirement for a PIF to appoint an auditor. The fund must still file accounts with the GFSC within six months of year end, but audit is now optional. Investors or managers may choose to opt in to an audit, and if they do, the auditor must have a presence in Guernsey. For most emerging managers this represents a meaningful cost saving, particularly in the early years of a fund's life.  Additionally, a Guernsey-licensed manager of a PIF (if any) is also exempt from the requirement to prepare audited accounts.

Applying to the Programme

  • The programme is designed for first-time and emerging fund managers who:

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    • Are establishing a fund manager entity and launching a regulated fund in Guernsey

    • Do not have an existing Guernsey track record (or have limited prior Guernsey experience)

    • Have a credible team, an investment thesis, and are targeting first close within 12-18 months of programme entry

    • Are prepared to engage actively with the cohort, the mentor programme, and the consortium partner network

     

    The programme is not designed for managers who are already well-established, who have previously launched multiple funds, or who are using it primarily for brand association rather than genuine support.

     

    Do I need to be based in Guernsey to apply?

    No. The programme has three entry routes: UK or international managers who want to domicile their fund in Guernsey while staying based abroad; managers who want to relocate to Guernsey; and professionals already working in the Guernsey financial service industry who are ready to launch their own fund. You choose the route that fits your situation.

     

    What experience or track record do I need?

    We are looking for managers with relevant investment experience in their target strategy, whether from a prior fund role, a family office, corporate investment, or direct investing. You do not need to have managed a fund before, but you need to demonstrate the experience, investment thesis, and relationships that make a fund viable. The selection panel assesses this directly.

     

    Can I apply if I have already started fundraising?

    Yes. The programme is designed for managers who are ready to launch, including those who have already begun building LP relationships or have soft commitments in place. Being further along does not disadvantage your application. Register your interest and we will give you an honest view on fit.

  • The process runs in three stages:

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    • Stage 1 - Application: Applications open 1 July 2026. Managers submit the full application form covering team, investment strategy, regulatory readiness, and programme fit. The application window closes 1 September 2026

    • Stage 2 - Shortlist: Applications are reviewed by the selection panel. Up to 20 managers will be shortlisted to attend the on-island selection event.

    •  Stage 3 - Selection event: The two-day finalist event is held in Guernsey in late September 2026 (currently scheduled for 23-25 September 2026). Following pitches to a panel of expert fund managers (fund of fund / mutli-managers) five managers will be selected as the Cohort 1 intake. Full programme entry begins October 2026.

  • The application is structured across four sections:

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    • Section 1  Entity and Programme Fit: Your proposed fund manager entity, intended Guernsey domicile, readiness across key milestones, and why Fund Foundry and Guernsey specifically.

    • Section 2  The Team: Key persons, track record, professional qualifications, regulatory history, time commitment, conflicts of interest, and professional references.

    • Section 3  The Fund Manager Firm: Ownership structure, governance, compliance arrangements, senior management function holders, and any existing regulatory positions.

    • Section 4  The Fund: Investment strategy, asset class, target fund size, fee structure, target investors, investment pipeline, and regulatory filing requirements.

     

    The GP lead also completes a separate Key Person Declaration (Appendix A) covering full personal disclosure. The lead GP submits this alongside the main form.

  • Yes. Attendance at the on-island selection event 23-25 September 2026 is a condition of being shortlisted. The event is a two-day programme in Guernsey. Travel and accommodation costs for shortlisted managers are covered by the programme. This is not negotiable, the in-person event is central to how the panel assesses fit, and to how the cohort begins to form as a group.

  • Yes, many applicants at this stage will not yet have incorporated. The application asks you to confirm your intentions and describe your readiness across a range of items, noting where things are planned rather than in place. You should be honest about where you are. A credible plan and the right team matter more than having every element already ticked off. The programme is designed to help you get from where you are to authorisation, it is not a reward for those who have already crossed the finish line.

  • No. Running concurrent applications to other programmes or processes is not a disqualifier. The application form asks you to disclose any concurrent processes so we have visibility, but this is for information only.

  • We are targeting 100+ applicants for five places in Cohort 1. The shortlist will be reduced to 20 finalists who attend the selection event, from which five managers are selected. The process is rigorous because the support on offer is substantial and the places are limited. The selection panel includes senior practitioners from across the consortium partner network.

  • All asset classes are eligible: private equity, venture capital, private debt, real assets, digital assets, infrastructure, and others. The programme is not restricted to impact strategies, though impact-aligned managers are welcome. What matters is that you have a credible, differentiated thesis and the experience to execute it.

Programme Structure and Support

  • From October 2026 cohort managers receive structured support across:

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    • Regulatory authorisation: Navigating the GFSC PIF registration process with support from legal and compliance partners in the consortium.

    • Fund structuring: Working with legal partners on LPA drafting, constitutional documents, governance frameworks, and fee structures.

    • Operations build: Setting up fund administration, banking, compliance infrastructure, and back-office processes including IT and HR.

    • Investor readiness: Preparing DDQ responses, LP materials, and investor communications.

    • GP mentoring: Regular 1:1 sessions with a matched senior industry mentor, with a meaningful proportion conducted in person.

    • Peer cohort: The five cohort managers work alongside each other, sharing learning and (where appropriate) deal flow and investor connections.

    • Programme workshops: Structured sessions across the 12 months on topics relevant to the launch and first close journey.

    • Participation in the GFSC Sandbox and Concierge offering where relevant

  • Each selected manager receives a £25,000 service voucher to use across the consortium partner network. The voucher can be applied to legal fees, fund administration setup, compliance and regulatory support, audit, and other eligible services provided by programme partners. It is designed to remove the financial barrier of early-stage professional service costs that can stall first-time managers before they have raised capital. Specific voucher terms, eligible services, and partner participation are confirmed at programme entry. The voucher is applied against actual invoiced services in your first year of operation. The £25,000 service voucher is redeemable with the Fund Foundry's consortium of service providers associated with the programme. The organisers estimate that, through additional reduced-fee arrangements from participating service providers, the total first-year benefit could exceed £75,000.

     

    You are free to engage providers outside the consortium for work the voucher does not cover.

  • Each of the five cohort managers is matched with a GP mentor - a senior practitioner from the Guernsey funds industry who has launched their own fund. The mentor provides 1:1 monthly guidance across the 12-month programme, drawing on their own experience of fund launching, investor relations, and fund management. Mentor sessions are structured but not prescriptive, and a meaningful proportion must be conducted in person or live on a call. Mentor matching takes account of the cohort manager's strategy, asset class, and specific support needs.Mentors are available between sessions for specific questions. This is a working relationship, not a ceremonial one.

  • Support from the consortium and the mentor programme runs for the duration of the programme. The programme is designed to get managers to first close, not to provide indefinite ongoing support. That said, managers who have been through the programme will retain the relationships and networks built with consortium partners and their peer cohort beyond the formal programme period.

  • The programme runs from launch at the Guernsey Funds Forum on 14 May 2026 through to spring 2027. The exact pace depends on your fund structure, your LP base, and how much groundwork you have already done. Once your service providers are in place, you work alongside them to launch.

For Sponsor and Consortium Partners

  • Consortium partners are the professional service providers who make the programme work. They contribute in several ways:

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    • Service voucher delivery: Partners provide eligible services to cohort managers against the £25,000 voucher, with costs met through the consortium funding model.

    • Selection panel: Fund Manager Partners participate in the selection process, reviewing applications and participating in the shortlist and selection event.

    • GP mentoring: Senior practitioners from Fund Manager Partners provide matched 1:1 mentor support to cohort managers.

    • Programme workshops and briefings: Partners present and contribute expertise across the structured programme content.

    • Profile and network: Partners benefit from association with a flagship Guernsey funds ecosystem initiative and early relationships with the next generation of Guernsey-domiciled fund managers.

  • Fund Manager Partners have a formal role in both reviewing applications and participating in the on-island selection event. There are two groups of Partners. 1)The manager selection panel which are established fund of funds and multi managers who will be responsible for reviewing the finalist application forms and then being part of the final selection panel at the 24 September event and  2) The GP mentors who are individual GPs who were first time managers in the past and who will be paired with a winning manager to share their experiences. 

  • The commitment varies by partner type and level of involvement. Service provider partners (legal, admin, audit, banking) are primarily involved in delivering services against the voucher and contributing to workshops. Fund Manager Partners have an additional role in selection and mentoring, as described above. The Programme Lead coordinates all partner engagement and provides advance briefing before each programme milestone. Partners should not be managing ad hoc requests, the programme is structured to make involvement predictable and manageable. 

  • All partner enquiries go through the Programme Lead at programme@guernsey-foundry.com. The Programme Lead is the single point of contact for consortium coordination and will escalate to the Programme Directors where needed.

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