There are over 25,000 registered funds established in the Cayman Islands. The growth in this sector of the financial industry is supported by careful regulation by the Cayman Islands Monetary Authority.
All Cayman Islands funds are regulated except those which satisfy certain criteria under the Mutual Funds Act and the Private Funds Act of the Cayman Islands.
Cayman Management provides a number of Cayman fund services covering the full spectrum of fund structures. Services range from the establishment of the relevant vehicle (e.g. Exempted Company, Limited Partnership or SPC) through licensing and regulation to the provision of corporate representation and experienced and professional independent directors.
Cayman Management works with a number of professional service providers in the Cayman Islands and internationally and can make suitable referrals for administrators, auditors and legal advisers as required to ensure an efficient and seamless establishment and launch of fund vehicles.
If you intend for your fund to operate in the digital assets space, there may be a need to bring in Cayman Islands legal counsel to advise on whether the Company is required to register under the Virtual Asset (Service Providers) Act, 2020 (VASP). Cayman Management can make suitable referrals to legal counsel as required and is familiar with and can assist you with the VASP application process.
To learn more about our corporate governance services, contact our team today.
The laws of the Cayman Islands have facilitated the development of three main vehicles for funds in addition to the traditional unit trust.
While a fund may take the form of a partnership or unit trust many funds established in the Cayman Islands take the form of an exempted Company. The advantages of this type of company are described in our company management section.
Traditional partnerships are notoriously complex and administratively expensive vehicles and it was as a response to the demands from the financial industry for simplification that the exempted limited partnership was created.
An exempted limited partnership is in reality as simple and straightforward to establish and administer as its corporate counterpart, the exempted company. This type of vehicle has a widespread use most particularly in the private equity fund sector. Should your professional advisor consider the appropriate vehicle for your fund to be an exempted limited partnership contact us to ask how we can help.
An SPC has many uses with its principal advantage of enabling the assets of one particular group of investors to be segregated (protected) from the assets and liabilities of another. Cayman Management has found that SPCs are an ideal structure for funds with a number of classes of investment or diverse groups of investors.
Whilst SPCs have become a popular Fund vehicle in the Cayman Islands with some international recognition, it is important that the governing requirements of the Cayman Islands Companies Act are strictly adhered to in the area of third-party contracts. Fund directors must be fully acquainted with the documentary and other technical requirements that make SPCs special. Contact us to discuss the SPC as a possible vehicle for your proposed fund.
Cayman Management has been working with professional advisors in the establishment of funds for many years. Most funds are regulated by CIMA; however, a fund need not register if it satisfies certain conditions under the Mutual Funds Act or the Private Funds Act.
In the event that the fund must register under the Mutual Funds Act or Private Funds Act, Cayman Management is familiar with the application process and can assist you as needed.
There are various continuing obligations in relation to regulated funds, which include the requirement to submit a Fund Annual Return (FAR), file updates to offering documents with CIMA and file accounts audited by an auditor approved by CIMA within 6 months of its financial year end.
Consideration must also be given to the effect of the Securities Investment Business Act on the operation of a fund and its respective service providers and its impact on the operation of Investment Managers and Investment Advisors in and from the Cayman Islands.
The ongoing monitoring of a registered fund to ensure compliance with the regulations is the responsibility of the fund directors and Cayman Management and its independent directors take that role very seriously. As the holder of a Company Management License the firm’s continued business existence is dependent on the careful exercise of its obligations under local regulations.
For detailed consideration of the regulatory requirements see Cayman Islands Monetary Authority (www.cimoney.com.ky) or for a general discussion as to what is required, please contact us.
Private funds, also known as private investment funds, provide a distinct investment opportunity for small groups of investors to engage in private equity, alternative investments, credit, venture capital, real estate, and infrastructure funds.
Typically, private family funds are established for the benefit of family members and are exclusively accessible to them, with the objective of consolidating and managing family wealth. These funds can collectively invest in various asset classes while being controlled to meet specific family objectives and goals.
Our team possesses a wealth of expertise and advanced systems that can help investors navigate the intricate nature of these funds. We collaborate with investors to establish and manage the fund structure, providing guidance and advice to ensure successful outcomes. Our experience covers a broad range of fund types, from multi-billion value funds to middle-market and emerging client funds.
We offer bespoke solutions to help establish your fund structure with services such as accounting and administration, cash flow management, and investor services. As a leading provider of corporate services, we can also offer SPV, company secretarial, and entity administration services.
Regardless of your fund’s size or purpose, we can tailor our services to meet your specific requirements. Our dedicated teams will work closely with you and your advisers, providing trustworthy guidance in defining long-term goals and offering efficient solutions that adhere to local regulatory landscapes. Our ultimate aim is to ensure your fund runs smoothly, fulfilling its operational requirements and handling day-to-day matters with the utmost care and attention, enabling it to reach its full potential.
Home to 100+ licensed banks from over 30 countries, Cayman is the #1 domicile for hedge funds and healthcare captives.