Planning For Liquidity - Using Cayman Islands Private Wealth Structures For Pre-IPO And Exit Events

The recent boom of activity in global capital markets and in particular the rise in the use of special purpose acquisition companies (SPACs) in connection with initial public offerings (IPOs) has led to an increase in thorough pre-planning for those expecting a healthy exit or liquidity event in the near future. In this context, Cayman Islands (Cayman) trusts and private wealth (TPW) structures, which are already widely used in cross-border wealth structuring, are now an increasingly popular choice for those looking ahead to protect these significant investment gains in a tax efficient asset protection vehicle.

Common scenarios

Anticipating impressive returns on their investments ahead of a business merger, acquisition, IPO, or other exit, many founders, tech companies, and those in the venture capital (VC) and crypto space are prioritising the establishment of new structures in order to ensure that hard-earned wealth is sufficiently protected for the future.