Private capital is growing in significance as a source of funds for private equity (PE) funds, says Guernsey Finance.

According to the Channel Island's promotional body’s research, the PE industry is taking advantage of the growth of private capital over the decade since the global financial crisis. This is particularly true for smaller, boutique and specialist managers.

The project, carried out at this year’s SuperReturn conference in Berlin, also showed that managers are increasingly being viewed as a source of deal flow as much as for their investment management knowledge. Private capital can amount to as much as...