Domiciling Private Equity Funds

HFMWeek (HFM): What factors have made Cayman such a popular domicile for private equity funds?

Piers Alexander (PA): As with other offshore financial centres, the Cayman Islands attracts a high level of non-resident financial services business. The globalisation of business, enhanced mobility of individuals and sophistication of the offshore world have all increased the attraction of offshore financial centres. Some of the onshore factors influencing the growth in demand of the Cayman Islands include high taxation, overly complex laws, significant regulation and political and/or economic uncertainty.

Growth of the Cayman Islands is driven in part by the onshore need to conduct business on a stable, sophisticated, tax-neutral platform. Some of the characteristics of the Cayman Islands that contribute to its success in attracting investment fund business include its political and economic stability, legislative and judicial soundness, favourable tax regime, quick set