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ARTICLE · 03 OCTOBER 2025

The Cayman Islands Segregated Portfolio Company: Why Managers Are Using SPCs Again

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The Cayman Islands has long been a global leader in the structuring of investment funds, offering a flexible and robust legal framework that appeals...

GlobalFinance and Banking
Daniel Beckett
Daniel Beckett
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The Cayman Islands has long been a global leader in the structuring of investment funds, offering a flexible and robust legal framework that appeals to fund managers and investors alike. Among the various vehicles available, the Segregated Portfolio Company (SPC) has experienced a fascinating journey - rising to prominence, falling out of favour, and now enjoying a resurgence. This article explores the evolution of the Cayman Islands SPC, the reasons behind its decline, and the factors driving its renewed popularity among fund managers.

Understanding the segregated portfolio company

An SPC is a unique form of company incorporated under the Cayman Islands Companies Act (the Act). Unlike a traditional company, an SPC can create multiple segregated portfolios (sometimes referred to as 'cells' or 'sub-funds') within a single legal entity. Each portfolio's assets and liabilities are legally separated from those of the others and from the general assets of the SPC.

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