JULY 2013
Legal Expert Board
b)Whether to engage local groups to provide directors, audit, banking and ancillary resources. Depending on onshore advice and budget, Cayman can provide leading solutions across the spectrum to meet requirements. Of course, there is usually flexibility to choose non-Cayman providers if preferred.
c)Cayman allows wide flexibility to investors in how cash and capital may be invested into Cayman entities and how it may be returned to investors, allowing innovative approaches of investors entering into joint ventures.
d)Cayman provides a strong base for seed and early-stage companies to begin, and provide venture capital investors with secure legal documents in later round funding. Listing of a Cayman vehicle is possible on multiple stock exchanges and offers the ability of an exit, along with trade sale and other variations.
What are the main types of cases you deal with?
My practice covers all types of investment fund vehicles, particularly hedge fund and private equity funds from start up, through addition of multiple feeder and master vehicles, along with restructurings. Campbells also acts for investors negotiating cornerstone terms and side letter benefits into large funds.
What are the main challenges your clients face and how do you help them to navigate them?
Depending on the background and track record, our clients look to us to provide advice on market norms for investment terms that investors expect to see. Along with the usual focus on management fees, redemption terms and hedge fund liquidity have been of much greater significance over the last few years due to
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For many years, the Cayman Islands has been a pre-eminent jurisdiction for the establishment and maintenance of investment vehicles for international investors.
the well-known challenges which have followed the financial crisis.
“Fund of Funds” activity has been challenging for those managers who have needed to match the liquidity required by their investors against the redemption terms imposed by underlying managers.
Side letters remain an ongoing concern for all investors, but the trend is for an increase in their use rather than less. Transparency is also a battlefront issue here; for example, pension fund investors often wish to know more about a fund’s portfolio for their own reporting requirements but also from a risk management perspective to assess allocations between different strategies. We also act for Cayman Islands’ directors and other service providers when tensions arise
between fund managers
structures. Following the inevitable slowdown of the prior few years, the overall number of new formations gives a buoyant reflection of continuing demand for recognised well known jurisdictions such as ours. LM
Robert Searle Robert Searle is a partner with Campbells, with particular emphasis on investment funds and general corporate matter. He has been
and
investors. Keeping proper lines of communication open with a focus on regular updates is key, with local directors needing an increasing array of skills to deal with complex and urgent issues.
Is there anything else you would like to add?
Given the ability of the Cayman Islands to innovate, and Campbells’ strong reputation, we are optimistic as to the future demand for new Cayman Islands’
involved in multiple leading institutional fund launches over the past decade in the Cayman Islands, following a stint with SJ Berwin in London on private equity funds and prior to that in Australia with leading law firms. He is a frequent speaker at international conferences and has been called to give expert testimony in interpreting investment documentation.
Contact: Robert Searle - Partner
Email:
rsearle@campbells.com.ky tel: + 00 61402699873
Campbells
Floor 4, Willow House, Cricket Square Po Box 884, Grand Cayman KY1-1103 Cayman Islands
www.campbells.com.ky
fund
www.lawyer-monthly.com
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