Update For All Registered Private Funds - Segregation Of Assets

Funds registered under the Private Funds Law (as amended) (the "Private Funds Law") are obliged to discharge certain custodial obligations related to the safekeeping of the fund's assets. In exercise of its authority under the Monetary Authority Law (as amended) (the "Monetary Authority Law"), the Cayman Islands Monetary Authority ("CIMA") has published a rule for the segregation of assets (the "Rule"). The primary intention of the Rule reinforces standard industry practice by reiterating that no manager, operator or, if appointed, custodian to a private fund is able to utilise the portfolio investments or investor capital of such private fund to finance its own or any other non-fund operations in any way. In most cases, we do not expect that funds will need to make significant changes to their existing arrangements.