Cayman Islands exempted limited partnerships (ELPs) remain the dominant funds vehicle in the Cayman Islands and taking security over limited partnership interests (LP Interests) in such ELPs increasingly forms a key part of NAV transactions involving Cayman structures. In this briefing, we provide lenders with an overview of the key Cayman law considerations when taking security over LP Interests, including the procedural requirements under the Exempted Limited Partnership Act (the "ELP Act"), practical guidance on establishing priority and additional considerations that may arise in the context of such transactions.
Cayman Registers
The first step from a Cayman perspective is to verify the proposed LP Interest to be secured. This can be completed by examining the ELP's register of limited partners to confirm that the proposed security provider holds the relevant LP Interest. Under the ELP Act, every ELP is required to maintain a register of limited partners which records the
