In a recent interview with HFM Week, Harneys
Partner Ian Gobin compared Cayman and US funds and discusses how
Cayman continues to lead the market. The full interview was
published in February 2017 in their report, How to start a
Hedge Fund in the US.
Why set-up a Cayman fund at the same time as setting up a US
fund?
It's a frequently asked question, particularly with start-up
and emerging managers. Where a manager is setting up a US fund (a
US limited partnership or US limited liability company, generally
organised in Delaware) to attract US taxable investors, the manager
will often market to or come across US tax-exempt investors, such
as charities, pension funds, and university endowments, as well as
non-US investors, who like the product and want to invest. If
that's the case then simultaneously with the set-up of the US
fund, the manager will set up a Cayman fund as part of the pooled
investment structure to take in the US tax-exempt investors and
non-US
