The Cayman Islands and Luxembourg are two of the world’s
leading investment funds jurisdictions and as fund structures
become more bespoke it is increasingly common to see fund
structures that include Cayman and Luxembourg fund vehicles.
Those lending to funds formed in Cayman and/or Luxembourg may
wonder why investment managers use these jurisdictions. In this
briefing we summarise why they are used and explain one way in
which investment managers are using Cayman and Luxembourg fund
vehicles together.
Advantages of Cayman funds
Cayman is well-known as an offshore jurisdiction at the
forefront of the investment funds industry.
- Cayman's tax neutral regime
(there are no personal, corporate income or capital gains taxes in
Cayman) provides a tax efficient platform to pool investor
capital.
