Statistics published by the Cayman
Islands Monetary Authority show that the Cayman jurisdiction
remains the preferred jurisdiction for managers looking to
establish offshore alternative investment funds.
This article is intended to provide
a high-level overview of some of the considerations and steps
involved in setting up an open-ended Cayman investment fund.
Structure
A typical "Hedge Fund" is
a Cayman domiciled open-ended alternative investment fund. Funds of
this type can be organised as a unit trust, a corporate entity or a
limited partnership.
While a Cayman company is the
vehicle most commonly used for new hedge funds, the type of fund
and the location of the investors the fund manager hopes to attract
may have a bearing on the ultimate structure of the fund. For
example, managers looking to promote a fund in Asia would be
advised to consider using a unit trust structure as this product is
familiar to Asia-based investors.
