The Cayman Islands has long been a jurisdiction of choice for the establishment of funds. They are particularly well suited for private placement funds intended for institutional or sophisticated high net worth investors because of the freedom from investment restrictions, open architecture for fund counter-parties and varying levels of regulatory supervision from the Cayman Islands Monetary Authority (“CIMA”).
Exempted and Registered Funds in the Cayman Islands have no requirements for a local administrator, and the option of appointing Vista as an EU based and authorised administrator is often seen as an added benefit.
- Exempted funds – these to not require registration with CIMA and are closed-ended funds or open-ended funds with no
more than fifteen investors (who are capable of appointing and removing the operator of the fund) and where the minimum investment is at least US$100,000
- Registered Mutual Funds – these funds are registered with CIMA, and require a local audit. They are targeted at institutional or sophisticated high net worth investors who invest a minimum initial amount of US$100,000, or whose shares are listed
on an approved stock exchange.