The Cayman Islands is the top domicile for investment money, attracting eighty% of all the new offshore fund formation. Cayman is believed housing even more than seventy five % of the world’s offshore hedge funds and almost one half of the industry’s estimated US$1.1 trillion of assets under management.
We’ve considerable experience, acting as Cayman Islands counsel to several 100 considerable asset management groups and investment money, a lot of which are complicated multi fund structures, ranging from CIMA registered hedge funds to private equity and venture capital money.
Legal Services to Establish the Fund of yours in the Cayman Islands
Doing work with our fund advisers brings a quality of program which moves beyond the original set up of the fund of yours. We guarantee an individual strategy that better understands the business objectives of yours. With a group of fund specialists which combines decades of expertise, we offer customers with the best legal advice. Our group functions as offshore legal advisors for Cayman-based and international fund management homes and offers innovative solutions and guidance to a bunch of fund service providers like managers, custodians, administrators, and banks.
Advantages of Cayman Islands Investment Funds
Cayman Islands is at the cutting edge of the investment money sector mainly due to the operational and structural benefits it provides, including:
Economic and political stability
No exchange controls restrictions
Reputable expert service providers
Abundance of knowledge within the investment fund space
Cayman regulators are extremely friendly, supple, efficient and innovative Cayman’s investment fund fee structure is globally competitive by nature, and that benefits the investor and also the supervisor with regard to the launch along with continuous operation/ care of the fund.
Cayman is on the OECD “White List” and has signed tax info exchange agreements (TIEA) with nineteen countries
Cayman Investment Funds
The Mutual Funds Law governs the vast majority of hedge funds domiciled in the Cayman Islands. Our advisers are well versed in this legislation, in addition to the Cayman Islands Companies Law allowing it to direct you throughout the system as well as the proof requirements for creating the fund of yours within the proper class.
Open-ended/Regulated Mutual Funds
Open-ended funds which meet specific standards of the Mutual Funds Law and are so subject to regulation under CIMA’s Investment and Securities Division may qualify to work as a hedge fund, licensed mutual fund, an administered mutual fund, a registered fund or maybe a master fund.
To get a closed ended fund, an investor’s funding is tied in for the whole lifetime of the fund without any capability for them to redeem. A closed ended fund is thus ideal for investments that need an extended schedule over what to mature, for example private equity, venture capital, real estate or maybe infrastructure investments. Closed-ended finances aren’t regulated in the Cayman Islands. They’re a favorite choice among private equity and then venture capital firms that operate internationally.
Exempted funds are mutual funds which won’t be asked to be controlled by CIMA in which there’re no far more than fifteen investors, the vast majority of whom are able to appointing and also taking out the directors of the fund.
This particular kind of fund could work without obtaining a license underneath the Mutual Funds Law, without appointing an authorized mutual fund administrator plus without filing some documents with CIMA. Nevertheless, a private mutual fund might choose being viewed as a regulated mutual fund.
Exempted Cayman Islands Investment Funds Vehicles
A Cayman Islands investment fund might adopt one of many structures set out below. We are able to advise you on the best structure for the situation of yours.
Cayman Islands Exempted Limited Partnership (“ELP”)
A favorite framework with private equity funds, the ELP provides a speed-to-market which really makes it effective and efficient when establishing in the Cayman Islands. The ELP is able to consist of 1 or even more typical partners along with only one plus limited partners, in addition to a corporation with or perhaps with no limited liability.
Cayman Islands Exempted Company
Created in accordance with the Cayman Islands Companies Law, an exempted company’s business activities happen largely outside the Cayman Islands.
Cayman Islands Segregated Portfolio Company (“SPC”)
A typical kind of an exempted company, the SPC system permits an enterprise to sort the assets and liabilities held within one portfolio from all those kept within a second or from the basic assets of the organization not attributable to the certain portfolio.
Cayman Islands Unit Trusts
A unit trust is constituted by a trust instrument in the type of a declaration of trust created by the trustee by itself or even in the form of a trust deed performed by both the supervisor as well as the trustee. A unit trust will generally be authorized in Cayman together with the Registrar of Trusts as an “exempted” trust pursuant to Section seventy four of the Trusts Law and therefore get a tax undertaking from the Governor in Cabinet pursuant to Section eighty one of the Trusts Law.