Principal Changes To The Cayman Exempted Limited Partnership Law

Cayman Islands Exempted Limited Partnerships ("ELPs") remain a popular choice of vehicle for the investment fund industry, most particularly in private equity fund structures. In recognition of their significance to the financial services industry in the Cayman Islands and in line with industry suggestions for improvement, the Exempted Limited Partnership Law ("ELP Law") has been amended this month by the Exempted Limited Partnership (Amendment) Law, 2009.

Overview

The amendments were introduced to make the default provisions applying to ELPs more consistent with the uses to which they are traditionally put. Notable changes include an expansion of the 'safe harbour' for activities of Limited Partners; clarification of the dissolution process; and the simplification of transfers of partnership interests. More amendments are anticipated in the near future.