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• SFDR Article 6 funds: meaning, scope and market practice What is an SFDR Article 6 fund? Where are SFDR Article 6 funds commonly established? How Article 6 differs from SFDR Articles 8 and 9 Interaction between SFDR and non-EU fund structures How Harneys can help 16.06.2026 12dk

  The Sustainable Finance Disclosure Regulation (SFDR) is one of the most consequential pieces of EU financial regulation to emerge in recent years. It establishes a classification framework for financial products based on their sustainability characteristics, dividing them broadly into three categories under Articles 6, 8 and 9. While much of the market's attention has focused on the higher-tier classifications - Article 8 (products that promote environmental or social characteristics) and Article 9 (products with sustainable investment as their objective) - the reality is that the vast majority of funds in the market sit within Article 6. This article explains what an SFDR Article 6 fund is, where they are typically established, how they differ from Articles 8 and 9 products, and how SFDR interacts with non-EU fund structures - a question of particular significance for managers domiciling funds in offshore jurisdictions such as the Cayman Islands, the British Virgin Islands and Bermuda. An SFDR Article 6 fund is a financial product that does not promote environmental or social characteristics (Article 8) and does not have sustainable investment as its objective (Article 9). In practical terms, Article 6 is the default classification: any fund that does not make specific ESG commitments in its investment process falls within this category. Article 6 does not mean a fund ignores sustainability risks entirely. Under Article 6(1) of the SFDR, managers of Article 6 products must still disclose the manner in which sustainability risks are integrated into their investment decisions, or explain why sustainability risks are not considered relevant. This is a disclosure obligation, not an investment mandate — the fund is not required to adopt any ESG strategy, but it must be transparent about its approach. Article 6 funds must also comply with pre-contractual disclosure requirements under Article 6(2), including a statement in offering documents on whether and how the product considers principal adverse impacts (PAIs) on sustainability factors. Where PAIs are not considered, an explanation must be provided. A common misconception is that Article 6 funds are "non-ESG" or sit outside the SFDR framework. This is incorrect. Every financial product offered by an EU-regulated financial market participant falls within the scope of the SFDR and must be classified. Article 6 is simply the baseline category for products that do not make affirmative ESG commitments beyond the minimum disclosure requirements. Article 6 funds are established across a wide range of jurisdictions, both within and outside the EU. The SFDR classification itself does not dictate where a fund must be domiciled - it is a disclosure regime that applies to the manager (or, more precisely, to the financial market participant making the product available), not to the fund vehicle itself. Within the EU, Article 6 funds are commonly structured in Luxembourg, the largest European fund domicile. Luxembourg offers well-established regulatory frameworks and is home to the majority of UCITS and EU-regulated alternative investment funds. Many managers without an ESG-specific strategy will establish their funds in Luxembourg and classify them as Article 6 funds by default. Outside the EU, a significant number of funds that are classified as Article 6 — or that would be classified as such if marketed into the EU — are domiciled in offshore jurisdictions. The Cayman Islands remains the dominant global fund domicile for alternative investment funds, particularly hedge funds, private equity vehicles and venture capital structures. The British Virgin Islands and Bermuda are also well-established fund jurisdictions. These offshore fund structures do not fall directly within the scope of the SFDR, but SFDR classification becomes relevant when the fund is marketed to EU investors by an EU-regulated manager or distributor, or where a non-EU manager delegates to or is managed by an EU-regulat...
• AIFMD explained: scope, thresholds, exemptions and compliance 10.06.2026 14dk

  The Alternative Investment Fund Managers Directive (AIFMD) is the cornerstone of EU regulation for managers of non-UCITS investment funds. It determines which fund managers require authorisation, sets asset thresholds that trigger full regulatory obligations, and establishes the framework for marketing alternative investment funds to EU investors. It also created a passport allowing AIFMs to market their funds throughout the EEA without relying on National Private Placement Rules (NPPRs). This note sets out the scope of AIFMD, the key thresholds and exemptions available, how the directive applies to EU and non-EU managers, as well as recent changes introduced by AIFMD II. The Alternative Investment Fund Managers Directive (Directive 2011/61/EU), commonly known as AIFMD, is the primary EU regulatory framework governing managers of alternative investment funds (AIFs). It was adopted in 2011 and transposed into national law across EU member states by July 2013. AIFMD was subsequently amended by Directive (EU) 2024/927 (AIFMD II), which had to be transposed by member states by 16 April 2026. AIFMD regulates alternative investment fund managers (AIFMs), not the funds themselves. Its core objectives are: Investor protection through enhanced transparency and disclosure requirements Systemic risk monitoring across the alternative investment fund sector A harmonised regulatory and supervisory framework for AIFMs operating across the EU An AIF is defined broadly as any collective investment undertaking that raises capital from a number of investors with a view to investing it in accordance with a defined investment policy for the benefit of those investors, and which is not a UCITS fund. This definition captures hedge funds, private equity funds, real estate funds, infrastructure funds, fund of funds and other non-UCITS structures. AIFMD applies to any entity that manages one or more AIFs, regardless of the legal form of those funds or whether they are open-ended or closed-ended. The directive captures both EU AIFMs and, in certain circumstances, non-EU AIFMs. Funds within scope Private equity and venture capital funds (including carried interest and co-investment vehicles) Hedge funds (including single-strategy and multi-strategy vehicles) Real estate, infrastructure and debt funds Fund of funds structures Any other collective investment scheme that does not require authorisation under the UCITS Directive Key regulated activities Portfolio management and risk management (these are the minimum functions that define an AIFM) Marketing of AIF units or shares to investors in the EU Administration, valuation and ancillary services (where performed by the AIFM) Delegation arrangements (the AIFM remains responsible even where functions are delegated to third parties) Structures outside scope Certain structures are expressly excluded from AIFMD, including holding companies, institutions for occupational retirement provision (IORPs), supranational institutions (such as the EIB and EBRD), central banks, national governments and bodies managing social security and pension funds, employee participation or savings schemes, securitisation special purpose entities, and single-investor vehicles where the investor itself has management control. AIFMD provides a registration regime for smaller EU-AIFMs that fall below certain asset thresholds. These sub-threshold AIFMs are exempt from the full scope of AIFMD but remain subject to registration and reporting obligations with their home member state regulator. De minimis thresholds (Article 3) EUR 100 million: applies where the AIFs managed include funds that employ leverage. This threshold is calculated on the total value of assets under management (AuM), including any assets acquired through leverage. EUR 500 million: applies where the AIFs managed are unleveraged and have no redemption rights exercisable during a period of five years from the date of initial investment. EU AIFMs that fall below these...
• Cayman Islands investment funds and hedge funds explained What are Cayman Islands investment funds? Key features of Cayman Islands funds Benefits of investing in Cayman Islands funds How to set up a fund in the Cayman Islands How Cayman Islands funds compare to other fund jurisdictions Role of CIMA in regulating Cayman Islands mutual funds Typical US manager use cases and common master-feeder structures How Harneys can help 08.06.2026 14dk

  The Cayman Islands is the world's leading domicile for hedge funds and alternative investment vehicles. Its combination of regulatory pragmatism, tax neutrality, legal certainty and deep service-provider infrastructure makes it the jurisdiction of choice for managers launching funds that accept institutional and sophisticated investor capital. This guide explains the principal fund structures available, their key features, the formation process, the role of the Cayman Islands Monetary Authority (CIMA), and how Cayman compares with competing jurisdictions. A Cayman Islands investment fund is a collective investment scheme organised under Cayman law to pool capital from investors and deploy it in accordance with a defined investment strategy. The legislative framework draws primarily on the Mutual Funds Act (as revised) and the Private Funds Act (as revised), which together regulate the two broad categories of fund: 1. Mutual funds – open-ended vehicles that issue redeemable interests and are regulated under the Mutual Funds Act. 2. Private funds – closed-ended vehicles that issue non-redeemable interests and are regulated under the Private Funds Act. Common legal structures include the exempted limited partnership (the dominant private fund vehicle), the exempted company, the segregated portfolio company (SPC) and the unit trust. The choice of structure depends on factors such as investor base, strategy and liability ring-fencing requirements. Cayman hedge funds share a set of characteristics that have driven the jurisdiction's dominance: Tax neutrality – No income tax, capital gains tax, withholding tax or corporate tax is levied at the fund level, ensuring a single layer of taxation at the investor's home jurisdiction. Flexible investment mandates – Funds may invest across asset classes, including equities, credit, digital assets, derivatives and real assets, with no statutory restrictions on strategy. Investor familiarity – Institutional allocators, pension funds, endowments and sovereign wealth funds routinely accept Cayman fund documentation as market standard. Deep service-provider ecosystem – A mature network of administrators, custodians, auditors, prime brokers, directors and legal counsel supports the full fund lifecycle. Robust legal framework – English common law underpins the Cayman legal system, providing predictable contract enforcement, experienced courts and a well-developed body of fund-related case law. The jurisdiction delivers a combination of commercial and structural advantages that benefit both managers and investors: Speed to market – A standard Cayman fund can be launched in two to three months, where documentation is in agreed form and service providers are engaged. No exchange controls – Capital moves freely into and out of the jurisdiction without restriction, supporting global multi-currency strategies. Regulatory proportionality – CIMA applies risk-based supervision tailored to fund type and investor sophistication, avoiding the prescriptive operational requirements seen in onshore regimes. Global recognition – Cayman fund vehicles are widely accepted by US, European and Asian counterparties and satisfy the due diligence requirements of major institutional gatekeepers. Liability segregation options – SPCs allow managers to ring-fence assets and liabilities of individual strategies within a single legal entity, reducing cost and complexity for multi-strategy platforms. The formation process is well-established and follows a predictable sequence: Structuring and strategy definition – The manager works with Cayman counsel to select the appropriate vehicle (exempted limited partnership, exempted company or SPC), agree on governance arrangements and confirm the regulatory classification (mutual fund or private fund). Service-provider engagement – The fund appoints an administrator, an auditor (where required), a custodian/prime broker (where required), and independent directors (where required). Doc...
• Duties and obligations of a director of a Cayman Islands fund 26.05.2026 48dk

  This guide provides an overview of the powers, duties and obligations of a director of an exempted company incorporated under the Companies Act of the Cayman Islands (Companies Act) which is registered with the Cayman Islands Monetary Authority (CIMA) as a fund (Fund). This guide is limited to those Funds registered with CIMA under section 4(3) or 4(4)(a) of the Mutual Funds Act (a Mutual Fund) and those Funds registered with CIMA under the Private Funds Act (a Private Fund) as well as the law and practice of the Cayman Islands. Other duties, obligations and potential liabilities may also arise under the laws of other jurisdictions. There is no precise definition of a 'director' under Cayman Islands law. The directors of a Fund may be individuals or corporate bodies and they are the persons with ultimate responsibility for the management and conduct of the Fund's affairs. The first directors of a Fund (whether described as 'executive' or 'non-executive') are typically appointed by the initial subscribers to the Fund or otherwise in accordance with the articles of association of the Fund (Articles). The register of directors maintained by the Fund will be prima facie evidence of the identity of the directors from time to time. A person undertaking the activities of a director without being formally appointed may be found to be acting as a 'de facto director'. Also, if the duly appointed directors of a Fund are found to be acting in accordance with the directions or instructions of another person then that person may be found to be acting as a 'shadow director'. A person is not deemed to be a shadow director however by reason only that the directors act on advice given by such person in a professional capacity, so that an investment adviser of a Fund making recommendations to the directors as to the purchase or sale of investments should not usually constitute a shadow director. Executive directors, non-executive directors, shadow directors and de facto directors are all subject to the duties and obligations set out in this guide. When deciding whether or not to act as a director of a Fund, the following points should be considered: Who will be the other directors of the Fund? Will your fellow directors have the ability to work with you to properly coordinate the proper oversight and management of the Fund? Any other interests you may have in the overall structure of the Fund and its advisers or service providers. If you are a connected person (for example, a principal of the Fund's investment manager) you may want to consider either not sitting on the board of the Fund or making sure that you are in a minority position. These measures will reduce the potential for conflicts of interest to arise which could increase the risk of your actions later being challenged by the investors of the Fund as not being in accordance with your duties to the Fund. The expectations of the Fund's key investors. They may be comfortable with a board of directors comprised of connected persons or they may require the Fund to have one or more directors independent of the Fund's investment manager. This is something that you may wish to discuss further with the Fund's representatives and the Fund's current or proposed key investors before agreeing to accept any appointment as a director. You need to have sufficient and relevant knowledge and experience to discharge your duties as a director. It is up to you to acquire and maintain sufficient knowledge to enable you to carry out your role. You should use the Fund's professional advisers to provide advice on any areas or transactions of which you are unsure. In particular, you should ensure that you are able to properly read and understand the financial information relating to the Fund, including its financial statements. If there is anything that you do not understand, then you should promptly obtain professional advice. Whether the Fund has in place, or will be obtaining, any directors and officers ...
• Establishing an Incubator or Approved Fund in the British Virgin Islands 21.05.2026 14dk

  These extremely popular and flexible funds are governed by the Securities and Investment Business (Incubator and Approved Funds) Regulations, Revised Edition 2020, as amended (the Regulations) and the Incubator and Approved Funds Guidelines. The British Virgin Islands (BVI) has often been described as the "home" of the emerging manager and these two fund products further reinforce that message. The incubator fund is aimed at start-up managers looking to establish a track record and test a strategy in the most cost- efficient manner. The approved fund is aimed at managers looking to establish a fund for a small, private and longer-term offering in a tested and respected funds jurisdiction. In order to qualify as an incubator or approved fund, a fund must fall within the requisite thresholds regarding (i) the number of investors, (ii) the maximum value of its net assets and (iii) the minimum initial contributions by each investor (incubator funds only). An approved fund is also required to appoint an administrator to ensure suitable oversight of its operations. The key features of incubator & approved funds Rapid approval times by the Financial Services Commission (the Commission) ensuring that the fund can be launched within a timescale that meets the manager's requirements Light regulation and minimal ongoing regulatory obligations Limited mandatory information to be contained in an offering document means that the fund can operate using a short-form term sheet, keeping legal costs and time associated with set-up to a minimum Stripped back requirements for mandatory functionaries to be appointed (other than the appointment of an administrator for an approved fund). The manager can therefore elect to only appoint functionaries they believe the fund requires from the outset No requirement to conduct an audit or file audited financial statements The incubator fund has a two-year validity period (with the possibility to extend this by a maximum of 12 months on application to the Commission), which gives the manager time to test their strategy and determine whether the fund is viable before committing to operate as a private, professional or approved fund Option to convert to a private or professional fund at a later date, should the fund outgrow the applicable restrictions Ability to commence business within two business days of lodging a complete application for approval with the Commission Criteria for the incubator & approved funds Number of investors: Incubator and approved funds must have no more than 20 investors. Once this limit is met, the Regulations allow a reasonable time to upgrade the fund to the next level, ensuring a smooth continuity of operation Minimum investment: For incubator funds only, each investor must be a "sophisticated private investor", which simply means that they were invited to invest in the fund and must make a minimum initial investment of US$20,000. There is no prescribed minimum investment amount for approved funds Total assets: The net assets of an incubator fund must not at any time exceed US$20 million. The net assets of an approved fund must not at any time exceed US$100 million Valuation policy: The fund is required to maintain a clear and comprehensive policy for the valuation of its assets (Fund Property) with procedures that are sufficient to ensure that the valuation policy is effectively implemented. The valuation policy shall: Be appropriate for the nature, size, complexity, structure and diversity of the fund and the Fund Property Be consistent with the provisions concerning valuation in its constitutional documents and term sheet/offering document Require valuations to be undertaken at least on an annual basis Include procedures for preparing reports on the valuation of the Fund Property Specify the mechanisms in place for disseminating valuation information and reports to investors Minimum investor disclosures: Each investor must be provided with a written warning (either in a pr...
• Continuing obligations for BVI private investment funds 19.05.2026 7dk

  As a recognised fund, your private investment fund (PIF) is regulated by the British Virgin Islands (BVI) Financial Services Commission (the FSC). This note provides a quick reference to your PIF's ongoing BVI obligations. PIFs are recognised under the Securities and Investment Business Act, Revised Edition and are subject to the Private Investment Fund Regulations, Revised Edition 2020. A PIF must At all times have at least two directors, at least one of whom must be an individualAppoint an appropriately qualified and independent individual as Money Laundering Reporting Officer (MLRO) for the fund who may, in practice, be a person provided by one of the functionaries to the fund (see below for more detail on anti-money laundering obligations), or otherwise outsourcedAppoint a Foreign Account Tax Compliance Act (FATCA) Responsible Officer and a principal point of contact for the BVI International Tax Authority (ITA)(see below for more detail on obligations under FATCA and CRS)Have an "appointed person" designated as having responsibility for undertaking each of (i) the management of fund property; (ii) the valuation of fund property; and (iii) the safekeeping of fund property (including the segregation of fund property) On the happening of certain events, a PIF is required to notify the FSC. The table below summarises these notification requirements and the timeframe for providing notice. There are various reporting and payment deadlines for a PIF throughout the year. A PIF is required to maintain a valuation policy setting out the applicable procedures for the valuation of fund property, the preparation of reports on the valuation and setting out the mechanisms for sharing valuation information with investors (Valuation Policy). A PIF must ensure that the person appointed as its valuation "appointed person" values fund property in accordance with the valuation policy. A PIF should also have a safekeeping policy and adequate arrangements in place for the safekeeping of fund property (Safekeeping Policy). On an annual basis, a PIF should review its Valuation Policy and Safekeeping Policy to ensure compliance with BVI legislation. A PIF must maintain records that are sufficient to show and explain its transactions, to enable its financial position to be determined with reasonable accuracy at any time, to enable it to prepare financial statements and make returns and, if applicable, to enable its financial statements to be audited. A PIF must prepare financial statements for each financial year that comply with: The International Financial Reporting Standards, promulgated by the International Accounting Standards BoardUK generally accepted accounting principles (GAAP)US GAAPCanadian GAAP; orInternationally recognised and generally accepted accounting standards equivalent to the accounting standards referred to above The BVI anti-money laundering (AML) regime applies to all funds as they are classified as "relevant persons" under the Anti-Money Laundering Regulations, Revised Edition 2020. In addition to appointing an appropriately qualified and independent individual as MLRO (as mentioned above), a fund will be required to: Put in place investor on-boarding procedures which address typical "know your client" requirements.Put in place and maintain a written and effective system of internal controls which provides appropriate policies, processes and procedures for forestalling and preventing money laundering and countering the financing of terrorism (the Manual). The Manual should be reviewed annually to ensure compliance with AML regime in the BVI.Report suspicious transactions to the Financial Investigation Agency (FIA) in the BVIReport the identity of its appointed MLRO to the FIA The BVI rules do provide for funds to outsource all and any of these obligations to functionaries based outside of the BVI, such as an administrator or investment manager. Any outsourcing must, however, be documented in writing. PIFs are required to...
• Guide to the British Virgin Islands approved manager regime (BVI) 18.05.2026 10dk

  This guide provides an overview of the British Virgin Islands' Approved Manager regime. The regime came into effect on 10 December 2012 with the Investment Business (Approved Managers) Regulations, Revised Edition 2020 (the Regulations) and the Approved Investment Managers Guidelines (the Guidelines). It introduces a less onerous regulatory regime for BVI domiciled investment managers and investment advisers and compliments the more heavily regulated investment business licensing regime under Part I of the Securities and Investment Business Act, Revised Edition 2020 (SIBA). The key features of the new regime are: For eligible managers and advisors, an alternative to licensing under Part I of SIBA The applicant must be a BVI company or limited partnership Application form provides for self-certification of "fit and proper" status of the applicant The approved manager can commence business seven days after filing a short and simple application with the Financial Services Commission (the Commission) pending formal approval The approved manager can act as manager or advisor to any number of incubator, approved, private or professional funds recognised under SIBA, as well as funds domiciled outside of the BVI in a Recognised Jurisdiction (as defined below) and closed ended funds domiciled in the BVI or in a Recognised Jurisdiction, if they have the key characteristics of a private or professional fund The approved manager is subject to caps of (i) aggregate assets under management of US$400 million for open ended funds and (ii) aggregate capital commitments of US$1 billion for closed ended funds Annual return and unaudited financial statements to be filed with the Commission No capital adequacy or professional indemnity insurance requirements and no requirement to appoint a compliance officer. The Regulatory Code does not apply At this point in time, a Recognised Jurisdiction for these purposes means: Argentina, Australia, Bahamas, Bermuda, Belgium, Brazil, Canada, Cayman Islands, Chile, China, Curacao, Denmark, Finland, France, Germany, Gibraltar, Greece, Guernsey, Hong Kong, Ireland, Isle of Man, Italy, Japan, Jersey, Luxembourg, Malta, Mexico, Netherlands, New Zealand, Norway, Panama, Portugal, Singapore, Spain, South Africa, Sweden, Switzerland, United Kingdom and the United States of America. Criteria for approved managers An approved manager may carry on business (defined as "relevant business" in the Regulations) as an investment manager or investment adviser to: 1. One or more incubator, approved, private or professional funds recognised under SIBA (or funds domiciled outside the BVI but in a Recognised Jurisdiction) 2. One or more closed ended funds which are domiciled in the BVI and have certain key characteristics of a private or professional fund 3. One or more open ended or closed ended funds which are domiciled in a Recognised Jurisdiction and have certain characteristics of a private or professional fund 4. One or more non-BVI funds (open ended or closed ended) investing a substantial part of its assets in a fund described in (a), (b) or (c) above 5. One or more persons who are affiliated (as defined in the Guidelines) to a fund described in (a) or (b) above 6. Such other person(s) as the Commission may approve on a case by case basis (the most common application under this section being for the purposes of providing some form of management advice to "managed accounts") Application process - timeframe An applicant must submit its application in the prescribed form to the Commission at least seven days prior to the intended date of commencement of the "relevant business". After the expiry of the seven day period (or such shorter period as the Commission may approve), the applicant may commence and carry on "relevant business" for a period of up to 30 days (such period being extendable for a further period of 30 days by the Commission). During this 30 day (or extended) period, the applicant will be deemed to have be...
• Data protection for investment funds domiciled in the British Virgin Islands 18.05.2026 7dk

  The Virgin Islands Data Protection Act 2021 (the Act) is now in force. The Act imposes a number of obligations upon investment funds in relation to the processing of personal data that they will inevitably collect as part of the investor onboarding procedure. In order to ensure compliance with the Act, investment funds should: Provide investors with a privacy notice Update their offering and subscription documentation Revisit service agreements with third parties, most importantly, the fund administrator Overview The Act governs how a data controller may process, use and retain personal data. Anyone who falls within the definition of a data controller" (of which an investment fund domiciled in the BVI clearly does) must now comply with the seven principles in the Act in relation to any personal data processed by the fund. Where a data controller engages a third party (such as an administrator or investment manager) to process personal data on its behalf (defined in the Act as a data processor), the data controller must ensure the data processor has appropriate safeguards in place in respect of the personal data. In addition to governing how a data controller processes, uses and retains personal data, the Act also sets out the rights of individuals to control their personal data and implements a series of offences and enforcement measures designed to ensure compliance. The Act is broadly designed to reflect the General Data Protection Regulation (GDPR) and the Cayman Islands Data Protection Act (both of with which many clients will already be familiar), however there are a number of differences that you should be aware of. Application of the Act to investment funds Any investment fund structured as a BVI company or partnership, or any foreign company registered in the BVI that acts as a general partner of an investment fund will be subject to the Act and will be a data controller. Investors in a BVI investment fund will routinely provide certain personal identifying information to the investment fund such as their name, address, date of birth, bank details etc and this is to be regarded as "personal data". Although the persons whose data is gathered under the Act ("data subjects") have to be natural individuals, the Act will still apply in connection with corporate investors who provide personal data for their beneficial owners, directors, employees and members. The individual to which the personal data relates does not need to be in the BVI or a citizen of the BVI in order for the Act to apply. What must an investment fund do to comply with the Act? As a data controller, an investment fund must ensure that it complies with the seven data protection principles contained in the Act. See our guide BVI introduces data protection regime for further information. In practical terms, an investment fund can demonstrate compliance with the data protection principles by taking the following actions: Send a privacy notice to existing investors, whether as a separate document or part of an update to the offering document Update subscription documents to include a privacy notice for new investors as well as obtain certain acknowledgements, representations and warranties Update offering documents Update agreements with any third parties that would be regarded as a data processor on the basis that they process personal data on behalf of the data controller Privacy notices If the investment fund is already subject to GDPR then it may have already adopted a GDPR compliant privacy notice. If that is the case, then a few amendments to the privacy notice to reflect the Act are all that are needed. If the investment fund has not yet adopted a privacy notice, then it should prepare one in order to communicate the required information to its investors and we would be happy to assist with this drafting where required. In either case, the privacy notice should be sent to existing investors and/or made available on an investor or fund administration ...
• The Funds Download - CayLux funds: Parallel funds without parallel headaches (Part II) 26.03.2026 1dk

  In this episode, our Partner Stéphane Karolczuk and Managing Director Danny Howell from FundSight explore the third-party AIFM model, its role in supporting non-EU asset managers, and the key challenges it solves. They discuss the AIFM's core responsibilities in portfolio and risk management, the delegation versus advisory models, and fund sponsor preferences in Asia. The conversation also highlights the AIFMD Passport, and the steps to onboard an AIFM and launch a fund for EU distribution. A concise guide for managers navigating European fund structures and strategies. Stay tuned for our next episode, where we will explore parallel fund structuring from a fund sponsor's perspective. Click here to subscribe to the Funds Download podcast. Choose your preferred platform from the list presented and click subscribe or follow once logged in. Visit the Funds Download podcast page to catch up on all the Funds Download episodes. If you're considering establishing a fund in the Cayman Islands, Luxembourg, or the British Virgin Islands, visit our Funds Hub for guidance.
• Le nouveau régime de carried interest luxembourgeois: une nouvelle ère pour les gestionnaires de fonds 18.03.2026 7dk

  Depuis le 1er janvier 2026, le Grand-Duché de Luxembourg a dispose d'un nouveau régime fiscal applicable aux carried interest, confortant ainsi sa position de place financière de premier plan au sein de l'Union Européenne pour les acteurs institutionnels du secteur des fonds d'investissement alternatifs. La présente note a vocation à présenter de manière synthétique les caractéristiques substantielles de ce nouveau régime. Pourquoi cette réforme était-elle nécessaire ? Le dispositif fiscal antérieur applicable aux rémunérations de type carried interest présentait des limitations substantielles. Seules les personnes physiques ayant acquis la qualité de résident fiscal luxembourgeois au cours de la période comprise entre 2013 et 2018 étaient susceptibles d'en bénéficier ; le bénéfice dudit régime était limité à une durée maximale de dix années et les conditions d'éligibilité étaient restreintes aux seuls salariés des sociétés de gestion de fonds. Par conséquent, depuis l'exercice 2018, aucun nouveau contribuable n'était en mesure de se prévaloir des dispositions de l'ancien régime. L'instauration d'un nouveau cadre normatif s'avérait dès lors indispensable afin de préserver la compétitivité du Grand-Duché et de maintenir son attractivité à l'égard des professionnels du secteur des investissements alternatifs. Cette réforme s'inscrit dans le cadre d'une stratégie gouvernementale de plus grande envergure visant à consolider la position du Grand-Duché de Luxembourg en qualité de place financière de premier rang à l'échelle européenne. Concomitamment à la refonte du régime fiscal des carried interest , les autorités luxembourgeoises ont procédé à une modification du dispositif fiscal des impatriés — prévoyant désormais une exonération d'impôt sur le revenu à hauteur de 50 % pour les revenus n'excédant pas 400.000 euros —, ont renforcé les mécanismes légaux d'intéressement aux bénéfices et ont instauré un nouveau cadre fiscal dérogatoire applicable aux options de souscription d'actions (stock-options) au bénéfice des start-ups. Deux catégories de carried interest La nouvelle loi crée deux catégories distinctes de carried interest, chacune avec son propre traitement fiscal. Le Contractual Carry constitue la structure la plus simple des deux dispositifs. Dans ce cadre, le bénéficiaire perçoit une quote-part des bénéfices du fonds par le biais d'un versement au titre du carry, sans être tenu d'investir. Cette rémunération s'apparente à une prime liée à la performance du véhicule d'investissement. Le régime fiscal applicable est particulièrement favorable : seul le quart du taux normal d'imposition sur le revenu s'applique, soit un taux effectif d'environ 11,5 % (ou 13 % en incluant la contribution dépendance). Le mécanisme du Participation Carry (également désigné sous le terme de " carried invest ") implique que le gérant procède à un investissement en capital afin d'acquérir un droit de participater aux distributions de carry. Ce dispositif se distingue du co-investissement classique en ce qu'il porte spécifiquement sur le traitement fiscal de la distribution du carried interest elle-même. Le nouveau régime ne prévoit ni seuil minimal d'investissement, ni pourcentage déterminé du capital devant être souscrit. La distinction fondamentale entre les deux mécanismes réside dans les modalités d'acquisition du carried interest : le Contractual Carry confère un droit contractuel sans contrepartie financière, tandis que le Participation Carry requiert un investissement effectif. Sous réserve du respect de deux conditions cumulatives — à savoir une période de détention minimale de six mois et une participation ne pouvant excéder 10 % du capital du fonds — le carried interest bénéficie d'une exonération totale de l'impôt luxembourgeois. Éligibilité élargie Le nouveau régime élargit substantiellement les catégories de personnes éligibles. Sont désormais visées l'ensemble des personnes physiques participant activement, de manière directe ou in...
• Luxembourg's Enhanced Carried Interest Regime: A new era for fund managers 18.03.2026 5dk

  As of 1 January 2026, Luxembourg has introduced a modernised and permanent tax regime for carried interest, positioning itself as one of the most competitive jurisdictions in Europe for alternative investment fund professionals. This briefing summarises the key features of the new regime and what it means for fund managers, directors, advisors and other industry participants. Why the reform was necessary The previous carried interest regime had significant limitations. Only individuals who became Luxembourg tax residents between 2013 and 2018 could benefit, the advantage was capped at ten years, and eligibility was restricted to employees of fund managers. Since 2018, no new individuals could qualify under the old rules. A modernised, permanent regime was therefore essential to ensure Luxembourg remains attractive to international talent in the alternative investment sector. This reform forms part of a broader strategy to strengthen Luxembourg's position as a leading financial centre. Alongside the carried interest enhancements, the government has revamped the inpatriate regime (offering a 50 per cent tax exemption on income up to €400,000), improved profit-sharing schemes, and introduced a new tax regime for stock options aimed at start-ups. Two categories of carried interest The new law creates two distinct categories of carried interest, each with its own tax treatment. Contractual Carry is the simpler of the two structures. Under this arrangement, the individual receives a share of the fund's profits through a carry payment without making any investment into the fund. It is essentially a performance-based bonus. The tax treatment is highly favourable: only one quarter of the normal income tax rate applies, resulting in an effective rate of approximately 11.5 per cent (or 13 per cent including the dependency contribution). Participation Carry (sometimes referred to as "carried invest") involves the manager paying money to acquire the right to share in carry distributions. This is distinct from traditional co-investment; it relates specifically to the taxation of the carry distribution itself. There is no minimum euro amount required, nor any specific percentage of fund capital that must be invested. The key distinction lies in how the carried interest is acquired: Contractual Carry involves receiving a contractual right without payment, whereas Participation Carry requires a genuine investment. Provided two conditions are met—holding the investment for at least six months and owning no more than 10 per cent of the fund's capital—the carried interest is completely exempt from Luxembourg tax. Expanded eligibility The new regime significantly broadens the categories of individuals who may benefit. It now covers all individuals actively involved in the management of an alternative investment fund, whether directly or indirectly. This includes employees of fund managers and management companies, partners and directors of those entities, individuals providing advisory services to the fund (provided they are active in management rather than purely administrative functions), independent board members of the fund, shareholders of management companies, and other non-employees who receive carried interest entitlements. Importantly, the preferential regime applies only to individuals, not to companies. To qualify, an individual must be tax resident in Luxembourg under both domestic law and any applicable double tax treaty. Structuring flexibility The new regime accommodates both EU-style whole-of-fund waterfall models and US-style deal-by-deal carry arrangements. The legal form of the fund—whether partnership, company or otherwise—does not affect whether the regime applies. In most cases, Participation Carry is structured through a dedicated special purpose vehicle, such as a Luxembourg special limited partnership, providing additional flexibility for clawback and other structuring considerations. Practical next steps Fund managers ...
• Introduction to automatic exchange of information for Cayman Islands investment funds 16.03.2026 21dk

  This guide provides a high level summary of the main obligations for Cayman Islands investment funds under Cayman Islands automatic exchange of information (AEOI) legislation. Over recent years governments around the world have agreed international standards for the automatic sharing of financial account information between global fiscal authorities, with the aim of reducing tax evasion. As part of its commitment to international transparency standards, the Cayman Islands Government is a signatory to: A Model 1B intergovernmental agreement with the United States (US IGA) which provides the framework for the implementation of the United States (US)Foreign Account Tax Compliance Act (FATCA) in the Cayman IslandsThe Organisation for Economic Co-operation and Development sponsored multilateral competent authority agreement and certain bilateral agreements or tax treaties regarding the common reporting standard on automatic exchange of information (CRS, together with the US IGA, AEOI Agreements) As Cayman Islands entities are not directly subject to the AEOI Agreements, the Cayman Islands has introduced legislation to implement the AEOI Agreements under the Tax Information Authority Act (TIA Act) including the Tax Information Authority (International Tax Compliance) (United States of America) Regulations (FATCA Regulations) and the Tax Information Authority (International Tax Compliance) (Common Reporting Standard) Regulations, as amended (CRS Regulations), together AEOI Legislation). Definitions used in this guide are as set out in the AEOI Legislation unless otherwise indicated. The Department of International Tax Co-operation (DITC) is the Cayman Islands government department responsible for tax affairs and the Tax Information Authority (TIA), created by the TIA Act, is the Cayman Islands competent authority for tax co-operation and is housed within the DITC. The DITC has issued guidance notes (Guidance Notes) on the AEOI Legislation, which can be found here and here, which provide details of the notification, reporting and ongoing obligations that apply, as well as a useful reminder of the differences between FATCA and CRS. In practice, the vast majority of Cayman Islands investment funds fall within the definition of an Investment Entity (one of the types of Financial Institution under AEOI Legislation) and will be classified as Cayman Islands Reporting Financial Institutions (Reporting FIs). Reporting FIs are required to report on financial accounts held by specific US persons or individuals or entities resident in certain jurisdictions (Reportable Accounts). There are certain differences between the definitions in each of the FATCA Regulations and the CRS Regulations, with the term Foreign Financial Institution being used under FATCA. In this guide we will be discussing 'FIs' or 'Financial Institutions'. The most notable notification obligations are: To register with the Internal Revenue Service of the US (IRS): to obtain a global intermediary identification number (GIIN) (even if a Reporting FI has no US Reportable Accounts) either through the IRS FATCA Portal or through a paper submission. 'Registered Deemed Compliant FIs' (which are specific low risk FIs that are exempt from full FATCA reporting obligations) are also obliged to register with the IRS.A Cayman Islands investment fund which is a Reporting FI is required by the FATCA Regulations to register with the IRS within 30 days of 'starting business'. While a fund is not technically operating until it starts to accept subscription payments from investors (for the purposes, at least, of the Mutual Funds Act), in reality, all funds have to provide their GIIN numbers to banking and other counterparties at a very early stage of their creation in order to open accounts. It is therefore important to get this registration done as soon as possible after the vehicle has been formed. When registering for a GIIN, the IRS FATCA Portal requires the name of a natural person to be...
• Continuing obligations of a Cayman Islands Registered Mutual Fund 16.03.2026 1sa 13dk

  This guide sets out the continuing obligations under Cayman Islands law of an open-ended fund registered with the Cayman Islands Monetary Authority (CIMA) under section 4(3) or 4(4)(a) of the Mutual Funds Act (Mutual Funds Act). Part A of this guide sets out the ongoing requirements under the Mutual Funds Act as well the various FATCA and CRS requirements, director registration obligations and anti-money laundering compliance. An open-ended investment fund, registered with CIMA under the Mutual Funds Act, can be structured as an exempted company, limited partnership, limited liability company or unit trust, each of which also have ongoing obligations. Part B applies to a fund that is an exempted company incorporated with limited liability and an authorised share capital. If the fund is an exempted limited partnership see also Part C. If it is a limited liability company (LLC) incorporated under the Limited Liability Companies Act (LLC Act) see also Part D and if it is an exempted trust, see also Part E. Please see our guide to mutual funds in the Cayman Islands for more details of the open-ended fund structures available in the Cayman Islands. CIMA has the power under the Monetary Authority Act (MA Act) to impose significant administrative fines of up to CI$1 million (US$1.2 million) for each breach of certain provisions of the Anti-Money Laundering Regulations (AML Regulations) and other Cayman regulatory laws and regulations, including the Mutual Funds Act, Securities Investment Business Act and Directors Registration and Licensing Act (DRL Act). The level of an administrative fine will depend on various factors including whether the breach is committed by an individual or a body corporate and if the breach is classified as minor, serious or very serious. An overview of the annual compliance dates is set out in our compliance calendar, which can be found here on our website. Note in particular that penalties frequently apply for late filings and so the registered office should be informed promptly of any notifiable changes to allow the appropriate filing/s to be made. Action Required Timing and Penalties Must be paid to CIMA. Fund/Feeder fund CI$4,125/US$5,031 Master fund CCI$3,075/US$3,750 SPC If a fund is structured as a segregated portfolio company an additional annual fee of CI$300/US$366 per segregated portfolio is also payable to CIMA. By 15 January of each calendar year. Penalties under Mutual Funds Act 1/12 of the annual fee due for each month the payment remains outstanding. For a fund which has ceased carrying on business and which has applied to de-register from CIMA half annual fees are payable. Action Required Timing and Penalties For all funds registered under section 4(3), all master funds and for those funds registered under section 4(4)(a) that filed an offering document with CIMA, a copy of amended offering document or supplement to the offering document (or prescribed details for a master fund which does not have an offering document) must be filed with CIMA along with a signed amended application form (if applicable). Offering document/supplement filing fee CI$125/US$153 Application form filing fee CI$300/US$366 Within 21 days of becoming aware of the change. CIMA expects the governing body and operators of registered funds to comply with the corporate governance principles set out in its Rule and Statement of Guidance on Corporate Governance for Mutual Funds and Private Funds issued in 2023 (SoG). The governing body of a regulated fund is the board of directors for a corporate fund, the general partner(s) of an exempted limited partnership, the manager(s) of an LLC and the trustee(s) of a unit trust. The governance structure of any fund will depend on the fund's size, structure, nature of business, risk profile of the operations and complexity. Action Required Timing and Penalties The governing body has responsibility for monitoring and supervising the fund's activities and affairs, including: ensure ...
• Continuing obligations of a Cayman Islands registered private fund 16.03.2026 1sa 12dk

  This guide sets out the continuing obligations under Cayman Islands law of a closed-ended fund registered with the Cayman Islands Monetary Authority (CIMA) under the Private Funds Act (Private Funds Act). Part A of this guide covers the ongoing obligations of a private fund that is registered under the Private Funds Act, as well the various FATCA and CRS requirements, and anti-money laundering compliance. A private fund, registered with CIMA under the Private Funds Act, can be structured as an exempted company, limited partnership, limited liability company or unit trust, each of which also have ongoing obligations. Part B applies to a fund that is an exempted company incorporated with limited liability and an authorised share capital. If the fund is an exempted limited partnership see also Part C. If it is a limited liability company (LLC) incorporated under the Limited Liability Companies Act (LLC Act) see also Part D and if it is an exempted trust, see also Part E. Please see our guide to private funds in the Cayman Islands for more details of the closed-ended fund structures and requirements under the Private Funds Act. CIMA has the power under the Monetary Authority Act (MA Act) to impose significant administrative fines of up to CI$1 million (US$1.2 million) for each breach of certain provisions of the Anti-Money Laundering Regulations (AML Regulations) and other Cayman Islands regulatory laws and regulations, including the Private Funds Act and Securities Investment Business Act. The level of an administrative fine will depend on various factors including whether the breach is committed by an individual or a body corporate and if the breach is classified as minor, serious or very serious. An overview of the annual compliance dates is set out in our compliance calendar, which can be found here on our website. Note in particular that penalties frequently apply for late filings and so the registered office should be informed promptly of any notifiable changes to allow the appropriate filing/s to be made. Action Required Timing and Penalties Must be paid to CIMA. CI$4,125/US$5,031 If the fund has alternative investment vehicles an additional annual fee of CI$525/US$641 per alternative investment vehicles is also payable to CIMA. If a fund is structured as a segregated portfolio company an additional annual fee of CI$525/US$641 per segregated portfolio is also payable to CIMA. By 15 January of each calendar year. 1/12 of the annual fee due for each month the payment remains outstanding. Action Required Timing and Penalties A copy of such changes must be filed with CIMA. Filing fee CI$125/US$153. Within 21 days of becoming aware of the change. Penalty under Private Funds Act of CI$20,000/US$24,390 for failing to do so. Action Required Timing and Penalties All private funds must conduct asset valuations. The valuation must be done on an appropriate and consistent basis, which must be at least annually, and in accordance with CIMA's Rules on the Calculation of Net Asset Values for private funds. The valuation must be done by an independent third party, independent administrator, or the manager or operator of the private fund subject to appropriate operational independence and disclosure of the potential conflicts of interest to investors. Must be done on an appropriate and consistent basis, at least annually. CIMA has the power to require that the valuation is verified by an auditor or independent third party, where the valuation is not undertaken by an independent third party. Penalty under Private Funds Act of CI$20,000/US$24,390 payable by the operator if the fund does not comply with the law. Action Required Timing and Penalties All private funds must monitor cash flows, cash account receipts and payments to investors. The monitoring must be done by an independent third party, custodian or administrator, or the manager or operator of the private fund subject to appropriate operational independence and disclosure of the p...
• Tokenised funds in the Cayman Islands 20.02.2026 10dk

  Last week, the Cayman Islands welcomed an influx of professionals in the digital assets space for its inaugural Cayman Crypto Week. As a jurisdiction at the forefront of innovative structuring for the digital assets space, this event was testament to the strength of the offering and experience of the professionals based here, and the increasing institutionalisation of crypto. Tokenised funds were the talk of the town, and unsurprisingly so, given the aptly timed draft legislative updates published in early February heralding a clear regulatory framework for tokenised funds set up in the Cayman Islands. What exactly is a tokenised fund? To add context, lets briefly summarise a traditional fund – an investment vehicle pooling capital from a number of investors. Investors typically will hold their interests in the fund by subscribing for shares in the fund vehicle (in the case of a company), limited partnership interests (in the case of a limited partnership), or membership interests (in the case of an LLC). The concept of a tokenised fund, fundamentally, is an investment fund which allows investors to subscribe for interests in the fund by acquiring tokens on a blockchain. The fund would mint and send tokens to an investor who has successfully subscribed for fund interests and sent capital to the fund (usually via a smart contract). Conceptually, in the ideal of a tokenised fund, the tokens issued by the fund vehicle would be the sole representation of fund interests (investors would not need to hold shares or other forms of interest), and the fund would operate entirely on-chain. In practice, due to other requirements and regulations applicable to operating an investment fund (as well as investor readiness), for now the most typical tokenised fund would issue tokens which represent or mirror the more traditional shares which are also issued. While investors in such a fund will likely consider the tokens to be the representation of their ownership interest in the fund, in reality there would be a conventional share register behind the scenes as well, which would reflect the ownership of those shares mirrored by the tokens. The Cayman Islands framework and proposed changes. Tokenised funds are not new in Cayman or the offshore world generally, and many prominent tokenised funds already operate in Cayman. That said, many such funds to date have been set up within the constraints of frameworks designed for traditional funds, with solutions to issues raised by tokenisation being developed to fit without a clear framework or certainty as to expectations of the regulator. The proposed legislative changes (once in force) will provide a definitive and clear framework allowing for certainty in setting up in Cayman, boosting confidence for both managers and investors. For reference, the proposed legislative changes mentioned relate to the Mutual Funds Amendment Bill 2026, the Private Funds Amendment Bill 2026 and the Virtual Asset Service Providers Amendment Bill 2026. Critically for offering certainty for tokenised fund launches in Cayman, the issuance; creation; sale; transfer or other disposition of tokenised equity or investment interests by regulated private and mutual funds will not constitute the issuance of virtual assets under the Virtual Assets (Service Providers) Act, and will therefore not be a regulated activity under that Act. The changes add clarifications and additional requirements specific to digital tokens to the existing funds regime. The key operational requirements and considerations to comply with the licensing regime as tokenised funds formed in the Cayman Islands are set out below: Comprehensive token records and availability to the Cayman Islands Monetary Authority. Tokenised funds must obtain and securely maintain all records of the issuance, creation, sale, transfer and ownership of tokenised interests (including any additional data the Cayman Islands Monetary Authority may require), and make them available ...
• The Funds Download - Unpacking Luxembourg's new carry regime 19.02.2026

  In this episode of Funds Hub, Vanessa Molloy and Pierre Luc-Wolff discuss Luxembourg's new carried interest tax regime. They explain the two categories now available, contractual carry and participation carry, and explore who can benefit, including employees, partners, directors, and advisors. Click here to subscribe to the Funds Download podcast. Choose your preferred platform from the list presented and click subscribe or follow once logged in. Visit the Funds Download podcast page to catch up on all the Funds Download episodes. If you're considering establishing a fund in the Cayman Islands, Luxembourg, or the British Virgin Islands, visit our Funds Hub for guidance.
• The Funds Download - Cayman–Luxembourg funds: Parallel funds without parallel headaches (Part I) 12.02.2026 1dk

  In this first episode of our new podcast series, our Global Head of Financial Services, Maggie Kwok, and Partner Stéphane Karolczuk explore why managers targeting European investors avoid relying on reverse solicitation and instead turn to national private placement regimes (NPPRs) where available, or choose to establish an AIFMD compliant Luxembourg fund alongside their Cayman structure. For managers with a European background, or those with growing European ambitions, setting up a Luxembourg fund managed by a third-party AIFM allows them to enjoy the best of both worlds: namely, (i) access to the AIFMD marketing passport for EU investors, and (ii) the ability to maintain their traditional Cayman fund for non-EU investors without disrupting existing structures. This parallel Luxembourg–Cayman approach offers flexibility, regulatory certainty, and an efficient distribution strategy across jurisdictions. Stay tuned for our next episode, where we will take a deeper dive into selecting and appointing a third-party AIFM for your Luxembourg fund and discuss the distribution, compliance, and marketing support they can provide. Click here to subscribe to the Funds Download podcast. Choose your preferred platform from the list presented and click subscribe or follow once logged in. Visit the Funds Download podcast page to catch up on all the Funds Download episodes. If you're considering establishing a fund in the Cayman Islands, Luxembourg, or the British Virgin Islands, visit our Funds Hub for guidance.
• Jurisdictional comparison British Virgin Islands, Cayman Islands and Luxembourg Investment Funds 09.02.2026

  The following table shows the similarities and differences between the BVI, Cayman and Luxembourg Investment Funds across 27 different areas. Please reach out to the authors to find out more.
• Offshore solutions for emerging fund managers in the Middle East 02.02.2026 9dk

  Emerging fund managers in the Middle East—particularly those targeting sub-US$50 million in assets under management —face critical decisions when launching their first fund. While the region's domestic markets are maturing, and offer a compelling alternative in certain circumstances, for first time managers selecting an offshore jurisdiction may be the better choice. The Cayman Islands and the British Virgin Islands offer cost-effective, internationally respected platforms that simplify fund formation, enhance credibility with global investors, and provide a neutral, well-understood legal framework. This article outlines the key advantages of these two jurisdictions and explains how their structures can align with the strategic needs of new managers in the region. Why emerging managers look offshore While distinct in their offerings, the Cayman Islands and British Virgin Islands share several foundational features that make them attractive to first-time fund managers. These jurisdictions provide a stable, tax-neutral environment, which is crucial for pooling capital from diverse international sources without adding layers of tax complexity. This, combined with their regulatory efficiency, creates a powerful value proposition: Global recognition and investor confidence – Both are leading international finance centres recognised by institutional investors, regulators, and counterparties worldwide. This global standing enhances a new fund's credibility and significantly simplifies the investor onboarding and due diligence process. Strong legal foundations – Based on English common law, both jurisdictions offer clear, predictable, and commercially-minded legal frameworks. This provides certainty on matters such as shareholder rights, director duties, and creditor protections, which is highly valued by sophisticated investors. Political and economic stability – As British Overseas Territories, they benefit from long-term constitutional stability and a reliable court system, with an ultimate right of appeal to the Privy Council in London. This insulates fund structures from local political and economic volatility. Cost efficiency – For emerging managers, budget is paramount. Startup fees, annual government fees, and professional service costs in these jurisdictions are often substantially lower than in major onshore financial centres, making them ideal for lean, entrepreneurial teams. Speed to market – Both jurisdictions feature streamlined and efficient regulatory registration or approval processes. This allows managers to launch their funds quickly and predictably, enabling them to capitalise on fundraising opportunities without being delayed by bureaucratic hurdles. Cayman Islands: Global standard-setter The Cayman Islands is the world's leading offshore fund domicile, with tens of thousands of funds registered with the Cayman Islands Monetary Authority. This depth of experience has created a sophisticated ecosystem of world-class service providers. The jurisdiction offers two primary fund structures relevant to emerging managers: Mutual Funds – Ideal for open-ended strategies with liquid assets (eg hedge funds) where investors can subscribe and redeem on an ongoing basis. These funds are regulated by the Cayman Islands Monetary Authority and must appoint a Cayman-based auditor and a licensed fund administrator, ensuring robust governance and independent oversight. Private Funds – Designed for closed-ended strategies with illiquid assets (eg private equity, venture capital, real estate) where investors commit capital for the life of the fund. While still required to register with the Cayman Islands Monetary Authority and appoint appropriate service providers for cash monitoring, valuation, and safekeeping of assets, the overall regime is more flexible than for mutual funds. Cayman remains the default choice for many institutional investors due to its regulatory maturity and deep investor familiarity. However, the mandatory app...
• Adding an offshore vehicle to your fund structure 13.11.2025

  Ready to launch your fund? Jump straight into our streamlined process by completing our intuitive questionnaire, designed to help you make informed choices about your offshore fund. Get started Get started