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Cayman Islands Investment Funds

The Cayman Islands is the leading domicile for investment funds, attracting 80% of all new offshore fund formations. Cayman is estimated to house more than 75% of the world's offshore hedge funds and nearly half of the industry's estimated US$1.1 trillion of assets under management.

Conyers has extensive experience, acting as Cayman Islands counsel to several hundred significant asset management groups and investment funds, many of which are complex multi-fund structures, ranging from CIMA-registered hedge funds to private equity and venture capital funds.

Legal Services to Establish your Fund in the Cayman Islands

Working with Conyers’ fund advisers brings a level of service that goes beyond the initial set-up of your fund. We guarantee a personal approach that better understands your business objectives. With a team of fund specialists that combines decades of experience, we provide clients with the highest quality legal advice. Our team acts as offshore legal advisers for international and Cayman-based fund management houses and provides innovative solutions and advice to a variety of fund service providers including banks, administrators, custodians and managers.

Advantages of Cayman Islands Investment Funds

Cayman Islands is at the forefront of the investment funds sector largely because of the structural and operational advantages it offers, including:

  • Political and economic stability
  • No exchange controls restrictions
  • Reputable professional service providers
  • Abundance of expertise in the investment fund space
  • Flexible legislation
  • Cayman regulators are very approachable, flexible, innovative and efficient
  • Cayman's investment fund fee structure is globally competitive, which benefits the manager and the investor with respect to the launch and ongoing operation/ maintenance of the fund.
  • Cayman is on the OECD "White List" and has signed tax information exchange agreements (TIEA) with 19 countries
  • Tax neutrality

Cayman Investment Funds

The Mutual Funds Law governs the majority of hedge funds domiciled in the Cayman Islands. Our advisers are well-versed in this legislation, as well as the [Cayman Islands Companies Law][8] and can guide you through the process and the documentation requirements for establishing your fund in the appropriate category.

Open-ended/Regulated Mutual Funds

Open-ended funds that meet certain criteria of the Mutual Funds Law and are thus subject to regulation under CIMA's Investment and Securities Division may qualify to conduct business as a hedge fund, licensed mutual fund, an administered mutual fund, a registered fund or a master fund.

Closed-ended/Exempted Funds

For a closed-ended fund, an investor's investment is tied-in for the entire life of the fund with no ability for them to redeem. A closed-ended fund is therefore suitable for investments which require a longer timeline over which to mature, such as private equity, venture capital, real estate or infrastructure investments. Closed-ended funds are not regulated in the Cayman Islands. They are a popular choice among private equity and venture capital firms who operate internationally.

Exempted funds are mutual funds that will not be required to be regulated by CIMA where there are no more than 15 investors, the majority of whom are capable of appointing and removing the directors of the fund.

This type of fund may conduct business without obtaining a license under the Mutual Funds Law, without appointing a licensed mutual fund administrator and without filing any papers with CIMA. However, a private mutual fund may elect to be treated as a regulated mutual fund.

Exempted Cayman Islands Investment Funds Vehicles

A Cayman Islands investment fund may follow one of the structures set out below. We can advise you on the most appropriate structure for your situation.

Cayman Islands Exempted Limited Partnership ("ELP")

A popular structure with private equity funds, the ELP offers a speed-to-market that makes it efficient and effective when establishing in the Cayman Islands. The ELP can consist of one or more general partners and one or more limited partners, as well as a corporation with or without limited liability.

Cayman Islands Exempted Company

Formed in accordance with the [Cayman Islands Companies Law][8], an exempted company’s business activities occur primarily outside of the Cayman Islands.

Cayman Islands Segregated Portfolio Company ("SPC")

A common form of an exempted company, the SPC structure allows a company to separate the assets and liabilities held within one portfolio from those held within another and/or from the general assets of the company not attributable to any particular portfolio.

Cayman Islands Unit Trusts

A unit trust is constituted by a trust instrument in the form of a declaration of trust made by the trustee alone or in the form of a trust deed executed by both the trustee and the manager. A unit trust will typically be registered in Cayman with the Registrar of Trusts as an “exempted” trust pursuant to Section 74 of the Trusts Law and thus obtain a tax undertaking from the Governor in Cabinet pursuant to Section 81 of the Trusts Law.

Cayman Islands Investment Funds Counsel

Our lawyers advise on fund formation and structuring in the Cayman Islands, including constitutional and contractual documentation, incorporation, registered office and administration services, regulation and compliance, as well as restructuring, liquidation, insolvency and winding up of funds.

With offices in the major international financial centres of Hong Kong, London and Singapore, we are more than able to provide you with strategic and responsive service. We are also well equipped to service the Middle East North Africa market, with lawyers who have thorough expertise and understanding of the region.

Contact our Investment Funds Team

Piers Alexander
Partner

HONG KONG   +852 2842 9525
Mobile   +852 6469 3375


Charissa Ball
Associate

Hong Kong   +852 2842 9550
Mobile   +852 6469 0270


Kevin C. Butler
Partner, Head of Cayman Islands Office and Corporate Practice

CAYMAN ISLANDS   +1 345 814 7374


Gene A. DaCosta
Partner

CAYMAN ISLANDS   +1 345 814 7765


Alexander Doyle
Associate

HONG KONG   +852 2842 9552
Mobile   +852 6469 3345


Richard D. Fear
Partner

CAYMAN ISLANDS   + 1 345 814 7759


Craig T. Fulton
Partner

CAYMAN ISLANDS   +1 345 814 7372


Vivien C.S. Fung
Partner

HONG KONG   +852 2842 9500
Mobile   +852 6469 3380


Ruth Hatt
Associate

CAYMAN ISLANDS   +1 345 814 7394


Linda Martin
Director, Head of London Office

London   +44(0)20 7562 0353


Maree Martin
Head Professional Support Lawyer - Cayman

Cayman Islands   +1 345 814 7781


Michael O’Connor
Associate

CAYMAN ISLANDS   +1 345 814 7395


Janice Oh
Director

Singapore   +65 6603 0703


Christopher J.R. Page
Counsel

Hong Kong   +852 2842 9589
Mobile   +852 6469 3367


Preetha Pillai
Director, Head of Singapore office

Singapore   +65 6603 0707


Hanifa Ramjahn
Counsel

Hong Kong   +852 2842 9586
Mobile   +852 6469 3382


Matthew Stocker
Partner

Cayman Islands   +1 345 814 7382


Winnie W.S. Wong
Counsel

Hong Kong   +852 2842 9533
Mobile   +852 6469 3372


Accolades
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"In terms of structuring companies and funds, Conyers are well versed with the various aspects of company law in BVI & Cayman."
- Chambers and Partners 2012

RELATED JURISDICTIONS

Cayman Islands


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Hong Kong
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Get in touch with us

Cayman Islands

Head of Cayman Islands Office & Corporate
Kevin C. Butler
+1 345 814 7374 |  Email |  View Profile


Hong Kong

Partner
Piers Alexander
+852 2842 9525 |  Email |  View Profile

London

Head of London Office
Linda Martin
+44(0)20 7562 0353 |  Email |  View Profile

Singapore

Director
Janice Ohn
+65 6603 0703 |  Email |  View Profile