Subscription Finance Collateral Package: A Cayman Islands / Luxembourg / Ireland Comparison

In this briefing we look at the typical collateral packages provided in favour of a secured party in a subscription finance deal.

This briefing focuses on both the similarities and differences between the Cayman Islands, Luxembourg and Ireland in the context of a subscription finance collateral package and issues to be considered by a secured party when structuring a transaction.

Cayman Islands

Security over uncalled capital commitments and rights to call capital are generally expressed as an assignment by way of security and it is typical for a Cayman fund structured as an exempted limited partnership (which acts through its general partner) and its general partner to both be party to such security document. A key feature of a subscription finance collateral package involving a Cayman fund is that there is no reason why such security document needs to be Cayman law governed and in the majority of cases the security document will not be governed by Cayman law