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ARTICLE · 22 JUNE 2015

Voluntary Liquidation: Taking The Right Steps

DMS Governance Ltd
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Is there a right time to consider Voluntary Liquidation of a Cayman Islands registered fund? There may be several good reasons for Investment Managers (IMs) to take this step, including...

Cayman IslandsFinance and Banking
Nicola Cowan
Nicola Cowan
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Is there a right time to consider Voluntary Liquidation of a Cayman Islands registered fund?

There may be several good reasons for Investment Managers (IMs) to take this step, including:

  • Completion of the useful business purpose of the fund
  • Rationalization of dormant structures in the portfolio, or a new business focus
  • When the fund can no longer meet its investment objectives due to wider macro environment
  • Significant redemptions

When the time comes for winding up, what should an Investment Manager do? A simple first step is to appoint a Voluntary Liquidator who is best placed to ensure that the closing down of the fund is conducted with independence, fairness and transparency, and according to all legal requirements.

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