Distributing Remaining Value In Liquidated Feeder Funds

The Grand Court of the Cayman Islands has determined how the remaining value in a liquidated feeder fund should be distributed amongst investors.

Introduction

On 2 September 2016, Mr Justice Andrew Jones QC delivered a landmark judgment, determining how the remaining value of a Cayman feeder fund in official liquidation should be distributed amongst its investors (Pearson v Primeo Fund¹

The case is the most recent chapter in the ongoing Primeo litigation² and provides valuable guidance to liquidators of Cayman feeder funds as to the scope of their power to facilitate an equitable distribution of value to investors.

Facts

Herald and Primeo were open-ended investment funds.  They both placed funds for investment with a Madoff-related entity called BLMIS.