Lending & Secured Finance 2021

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. We have seen a significant uptick in the use of investment fund holding entities structured as orphan vehicles as lenders are looking to address US bankruptcy concerns. The robust and creditor-friendly legislation in the Cayman Islands provides counterparties with significant comfort in secured lending transactions, which continues to make the Cayman Islands the jurisdiction of choice for many financial institutions. We continue to see an increase in the use of hybrid and NAV facilities in both the private equity and hedge fund space. Exempted companies and exempted limited partnerships are still the most popular entities