Fund Finance Security Guide 2024 - Cayman Islands

This publication provides an overview of the subscription finance security package in transactions involving Cayman Islands fund structures.

FUND STRUCTURES IN SUBSCRIPTION FACILITIES

Cayman Islands private equity funds have historically been registered as exempted limited partnerships (ELPs), particularly for the North American and European markets. While other types of Cayman entities (such as exempted companies and limited liability companies (LLCs)) are occasionally used as fund vehicles, the ELP is by far the most common type of entity used for closed-ended private equity funds. For this reason, this section primarily focuses on subscription facilities involving an ELP.