The Cayman Islands: Mourant Ozannes presents a guide for hedge fund managers
The Cayman Islands continue to be the preeminent offshore jurisdiction for hedge funds. Around 85% of the world’s hedge funds are domiciled in the Cayman Islands, enabling the jurisdiction to outrank competing offshore centres (BVI, Bermuda and Jersey among them) as the top spot for hedge funds. This paper explains the attractions of the Cayman Islands as a destination for managers wanting to establish hedge funds offshore, and examines the commercial, legal and regulatory considerations that combine to make Cayman their preferred jurisdiction.
Hedge funds established in the Cayman Islands will typically take the form of a company, a limited partnership or (less commonly) a unit trust. If statutory segregation between assets and liabilities of sub-portfolios is desired, the SPC model will be attractive. Each of these vehicles can be used as a stand-alone fund, a fund of funds or as part of a master-feeder structure. Their managers need not be domiciled in the Cayman Islands. Generally, all open-ended funds established in Cayman will need to be registered with CIMA. A fund will be deemed open-ended if it issues “equity interests” (shares, partnership interests or units) that participate in the fund’s profits and gains, and which are redeemable (or otherwise capable of being repurchased) at the investor’s option. The reference to equity interests is important, because this excludes debt instruments (including warrants, convertibles and sukuk instruments); funds issuing such instruments will not be required to be registered with CIMA…
If you are registered and logged in to the site, click on the link below to read the rest of the Mourant Ozannes briefing. If not, please register or sign in with your details below.
News from Mourant Ozannes
News from The Lawyer
Briefings from Mourant Ozannes
The Royal Court of Jersey has concluded that it has power under its inherent jurisdiction to sanction a compromised settlement of litigation reached by the plaintiff on behalf of a minor.
A private trust company is a privately owned corporate trustee whose sole purpose is to act as trustee to a trust or group of ‘connected’ trusts.