The Cayman Grand Court has handed down a decision that has
significance for Cayman master-feeder fund structures. Funds and
their advisers should review the redemption provisions in master
fund articles of association and partnership agreements to ensure
that, operationally, redemptions are being effected in accordance
with such documents.
Background
In the matter of Ardon Maroon Asia Fund (In Official
Liquidation) concerned 'back-to-back'
redemptions within a master-feeder fund structure, in which a
feeder fund's liquidators contended that, upon receipt and
acceptance by the feeder fund of a redemption request by one of its
investors, an 'automatic' redemption of the feeder
fund's holding in the master fund had occurred on a
'back-to-back' basis.
