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ARTICLE · 02 APRIL 2025

Guide To Private Funds In The Cayman Islands

Collas Crill
Collas Crill
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Collas Crill

Collas Crill

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The Cayman Islands is the leading jurisdiction for the offshore investment funds industry due to its combination of flexible and appropriate regulation...

Cayman IslandsFinance and Banking
Chantelle Day
Chantelle Day
Shaela W Rae
Shaela W Rae
Juliana Wood
Juliana Wood
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Introduction

The Cayman Islands is the leading jurisdiction for the offshore investment funds industry due to its combination of flexible and appropriate regulation, an approachable and effective regulator, professional service provider expertise, high reputation among investors and a tax neutral regime.

Investment funds established in the Cayman Islands fall into two broad categories: open-ended funds and closed-ended funds.

Generally, open-ended funds provide investors with voluntary redemption or repurchase rights, whereas closed-ended funds do not grant investors with those rights. Typically, open-ended funds will invest in liquid assets which can be readily realised to satisfy redemptions and closed-ended funds will invest in less liquid assets requiring time to liquidate/realise value and for a defined period of time.

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The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

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