Changes To The Cayman Islands Private Funds Law

The Cayman Islands Government has approved an amendment to the Private Funds Law 2020 (the "PFL"). The amendment is significant because it broadens materially the definition of "private fund" under the PFL.

What is the scope of the amendment?

The amendment removes the following elements from the definition of "private fund" under the PFL:

• whilst single investor structures and individual investment management arrangements continue to be excluded, it is no longer necessary that the structure be established for the purpose of spreading investment risk;
• the requirement that the business of the relevant entity include the offering and issuance of investment interests has been amended so that investments interests are required to be offered or issued by the relevant entity;