1 Overview
1.1 What are the main trends/significant developments in
the lending markets in your jurisdiction?
The Cayman Islands continues to be a jurisdiction of choice for
the establishment of investment funds, portfolio investment
companies and corporate vehicles, each of which utilise secured
lending arrangements in a variety of forms. The robust and
creditor-friendly legislation in the Cayman Islands provides
counterparties with significant comfort in secured lending
transactions and, as a result, we continue to see an increase in
the use of hybrid and NAV facilities in both the private equity and
hedge fund space and the continued reliance on investment fund
holding entities structured as orphan vehicles to address US
bankruptcy concerns of lenders. Exempted companies and exempted
limited partnerships are still the most popular entities across all
business areas, but we also see an increasing use of limited
liability companies as a result of advantageous
