What You Need to Know About the Cayman Fund?

The Cayman Islands is the world’s leading domicile for offshore funds with over 10,000 funds currently registered with Cayman Islands Monetary Authority (“CIMA”). Cayman is well recognized as a highly regulated and politically stable jurisdiction which offers a secured and flexible funds operating environment.

Common Fund Vehicles

The Cayman Islands has company, trust, partnership and related laws that allow a high degree of flexibility for establishing mutual funds. The four vehicles commonly used for operating mutual funds are the exempted company, the segregated portfolio company, and the exempted limited partnership.

Exempted Company - The exempted company may redeem or purchase its own shares and may therefore operate as an open-ended corporate fund. Closed-ended corporate funds can also be established using the exempted company and it is a relatively straightforward procedure to convert from one to the other.

Segregated Portfolio Company - An exempted company can also be established as a "Segregated Portfolio Company" ("SPC") with protected cells or portfolios. The SPC makes it possible to provide a means for different groups to protect their assets when carrying on business through a single legal entity.

Exempted Limited Partnership - The exempted and limited partnership provides a second unincorporated vehicle and it can be formed as easily as the exempted company or the unit trust. Please contact the Registrar of Companies or your professional advisors for more information on structuring a fund in the Cayman Islands.

Reference: https://www.cima.ky/