Rolling out the Green Carpet: Reflections on a year in the Irish Funds industry

With nearly 30 years of experience in financial services this past year saw Lloyd Collier (JTC Group) begin an Institutional Client Services role within the Irish funds environment with its particular nuances and subtle differences.

Nearly a year into the role, he looks back on his experience...

Q: Can you start by telling us about your professional background and what brought you to Ireland in July 2024?

Lloyd Collier (LC): I had spent over 20 years at a leading US asset servicing firm, specialising in collective investments, quant trading strategy, private equity portfolio analysis, and middle office functions.

This broad expertise gave me a strong understanding of post-deal origination processes, which many in this industry overlook.

After such a diverse career, the opportunity in Ireland was appealing due to its dynamic financial environment and the prospects it offered.

Q: What makes the financial services sector in Ireland particularly attractive?

LC: Several elements make Ireland's financial services sector exceptionally appealing.

Firstly, the breadth and quality of talent available is remarkable.

Ireland produces over 80,000 graduates annually, contributing to a solid foundation of future talent and leadership. The geographic diversity is also impressive, with financial hubs spanning Waterford, Wexford, Cork, Kilkenny, Belfast, and, of course, Dublin.

Additionally, there's a unique sense of community here. Everyone is willing to help and connect you with the right people.

It might sound cliché but it feels like there are no strangers, only friends you haven’t met yet. This interconnectedness is crucial for fostering relationships and facilitating business operations.

Q: What is the significance of Ireland’s fund structures like the ICAV and ILP?

LC: Ireland has developed robust tools for private capital management, including the Irish Collective Asset-management Vehicle (ICAV) and the Investment Limited Partnership (ILP).

The ICAV is particularly noteworthy for several reasons. It is the only EU 27 fund platform with a full US tax treaty at a 0% rate. This provides significant tax advantages, making it an excellent choice for General Partners (GPs) and Limited Partners (LPs) with US connections. The ICAV is designed to be highly flexible and can be tailored to meet the specific needs of different fund managers, which enhances its attractiveness.

The ILP, on the other hand, caters to private equity and venture capital funds that seek a flexible and efficient structure.

The ILP provides a partnership structure that is familiar to US investors, incorporating features that make it simpler to establish and operate compared to other jurisdictions. For funds needing a less complex structure with fewer regulatory requirements, the ILP is another viable option, especially for smaller setups with around 20 to 30 LPs.

These structures offer flexibility and tax efficiency, making Ireland a competitive and attractive domicile for funds. Additionally, the regulatory environment is supportive yet robust, ensuring a balance between compliance and operational ease.

Q: How does the atmosphere in Ireland impact business operations and growth?

LC: The atmosphere has a significant positive impact on business operations and growth.

In Dublin, in particular, there’s a pervasive spirit of cooperation. Everyone wants to help, be your friend, and get involved. This supportive environment means that if you ever need assistance or a connection, someone is always ready to step up and recommend the right person.

This network of support accelerates problem-solving and fosters a collaborative approach to business. It’s a cultural trait that feeds into the efficiency and effectiveness of the financial services sector here.

Part of the charm is the Irish natural humility which means people aren’t naturally comfortable talking about how great a set of capabilities that the country has / to discuss continuing strengths - it reminds me of when the Rugby World Cup comes up and everyone says “we aren’t going to make it past the quarterfinals”.

Q: How do you see Ireland’s future in terms of talent development and industry growth?

LC: I see a very bright future for Ireland in both talent development and industry growth.

The country continues to be a fertile ground for emerging talent, given its strong educational infrastructure and the consistent output of highly skilled graduates. These new professionals bring fresh perspectives and innovative ideas, crucial for the continued growth and evolution of the financial services industry.

Moreover, Ireland's strategic positioning within the EU, coupled with its attractive fund structures and tax advantages, positions it well for sustained growth. The influx of international businesses and the local support for digital and financial enterprises further bolster its prospects.

Q: Aside from funds and asset servicing, are there any other financial sectors in Ireland that have caught your attention?

LC: Yes, several other sectors are thriving in Ireland.

Most particularly, Aviation financing is a significant sector. I was lucky enough to attend the Global Aviation ABS conference in Dublin in January this year – it was amazing to see the extent of its prominence, with every bar/restaurant/coffee shop on Dawson Street taken over by an industry player and the amazing buzz this created.

Equally, Ireland has a global leading brand in Money Funds, UCITS, ETFs, Hedge fund administration, ABS securitisation and CLOs. Each of these sectors benefits from the well-established financial ecosystem and regulatory support in the country.

Q: What would you say to someone looking to Ireland as their fund servicing destination of choice?

LC: I would say go for it.

Ireland offers a compelling mix of a skilled workforce, a supportive community, advantageous fund structures, and a pro-business regulatory environment. The country is not only rich in opportunities but also in the quality of life and professional relationships you can build here.

Whether you’re an individual professional or a business looking to expand, Ireland provides a fertile ground for growth and innovation in the financial services industry.