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The Cayman Islands is the leading domicile for investment funds, attracting 80% of all new offshore fund formations. Cayman is home to 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 significant asset management groups and investment funds, covering the whole range of CIMA-registered structures, including hedge funds, private equity, venture capital, real estate and infrastructure funds.
Partner, Global Head of Investment Funds
Director, Head of Singapore office
Partner, Head of Private Equity – Cayman
Partner
Partner
Partner, Head of Cayman Office and Corporate Practice
Counsel, Head of Regulatory & Risk Advisory (Asia)
Counsel
Counsel
Counsel
Associate
Senior Associate
Counsel
Senior Associate
Working with Conyers’ fund advisers brings a level of service that goes beyond the initial set-up of your fund. Our personal approach aims to understand your business objectives. With a team of fund specialists that combines decades of experience, we provide clients with the highest quality legal advice. Our funds team acts as offshore legal advisers for international and Cayman-based fund management houses and our sponsors, providing innovative solutions. We draw on our market practice knowledge and fund structuring expertise to advise on the full scope of available fund structures most suitable to our clients’ needs.
Cayman Islands, for many reasons, is at the forefront of the investment funds sector, including the structural and operational advantages it offers. In addition, political and economic stability, no exchange controls restrictions, reputable professional service providers, an abundance of expertise in the investment fund space and flexible legislation are favourable draws for fund sponsors. Cayman regulators are very approachable, flexible, innovative and efficient. General and regulator fees for Cayman investment fund structures are globally competitive, given cost benefits distinguish the launch and the 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 also contributes to its appeal.
To help fund sponsors decide whether the Cayman Islands is the right home for their fund, we outline some important factors to consider when setting up a private equity or venture capital fund, as well as an overview of necessary documentation and relevant regulations.
To help fund sponsors decide whether the Cayman Islands is the right home for their fund, we outline some important factors to consider when setting up a hedge fund, as well as an overview of relevant documentation and regulations.
The Mutual Funds Act governs regulated open-ended funds domiciled in the Cayman Islands, in particular hedge funds. Our advisers can guide you through the regulatory process and the documentation for establishing your fund in the appropriate category under the Mutal Funds Act.
Open-ended funds that meet certain criteria of the Mutual Funds Act and are thus subject to regulation under CIMA‘s Investment and Securities Division may conduct business, typically by being regulated as a registered fund, but other options such as a licensed mutual fund, an administered mutual fund, an exempted fund or a master fund are available.
The Private Funds Act governs regulated closed-ended funds domiciled in the Cayman Islands.
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.
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.
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.
Formed in accordance with the Cayman Islands Companies Act, an exempted company’s business activities occur primarily outside of the Cayman Islands.
A common form of an exempted company, the SPC structure allows a company to establish separate pools of the assets and liabilities held within one portfolio from those held within other segregated portfolios. This permits significant flexibility for sponsors wishing to pursue a variety of different investment strategies within one vehicle.
A unit trust is constituted by a trust instrument like 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 and are often favoured by sponsors for Japan-focused funds.
