Changes To The Cayman Islands Exempted Limited Partnership Law

The Cayman Islands Exempted Limited Partnership Law, since its original enactment in 1991, has allowed the Cayman Islands to attract high quality business with a partnership structure that was familiar to many professionals around the world. An exempted limited partnership (ELP) is used for many different reasons including as an attractive vehicle for private equity and hedge funds. In response to requests from industry, the Cayman Islands government has recently enacted the Exempted Limited Partnership Law 2014 (ELP Law) which updates the old law to give greater freedom to the general partner (GP) and limited partners (LPs) to determine how the partnership is to operate. The changes also bring our law more closely in line with Delaware law, enabling GPs to offer their US and offshore investor base a more closely aligned product.