The New Cayman For European Funds

The Alternative Investment Funds Managers Directive ("AIFMD" and / or the "Directive") has dichotomised the funds industry into EU and non-EU funds jurisdictions. This has put Gibraltar which was one of a dozen such domiciles into a category of one of four European alternative fund domiciles. This is particularly significant because United Kingdom managers with AIFM licenses will be looking for European vehicles for their funds in order to market to European investors.

Until now, these managers tended to use Cayman vehicles which they will probably continue to use for their non-EU business. For those that wish to use their newly earned passporting rights it stands to reason that in their search for European vehicles for their funds, they should look to the jurisdiction which is closest legally, and in regulatory approach to what they are used to in the Cayman Islands. Gibraltar is the only European jurisdiction that allows for the pre-authorisation launch of a fund,