An introduction to Cayman Private Equity Funds

By Amber Ramsey – Executive Director, DMS Governance. Published in MAINSPRING.

The Cayman Islands are the world’s fifth largest financial center and the pre-eminent offshore jurisdiction for private equity fund formation.

It has been a natural choice for institutional investors and fund managers, for several reasons:

• Regulatory environment – Its government and its regulator, the Cayman Islands Monetary Authority (CIMA), have worked continuously with international authorities to ensure that the Cayman Islands is trusted as a well-regulated, cooperative and transparent jurisdiction.
• Tax neutral – it works transparently with international tax authorities to counter tax evasion.
• A respected legal system, based on English law, with well-recognised legal concepts at its core.
• A supportive government with a strong philosophy of cooperation and consultation within the industry and a highly-respected court system.
• Funds flexibility with bespoke formation and structuring options. Cayman operates in a straightforward, responsive and timely manner and with a flexibility that imposes no restrictions on strategy, liquidity, leverage or investment restrictions.
• The Cayman Islands’ high-quality service providers make it easy and affordable to launch a Cayman fund.