Offshore fund vehicles are suitable for hedge and private equity fund managers seeking to attract non-US and/or tax-exempt US investors. In conjunction with offshore counsel, Riveles Law Group has broad experience establishing offshore funds in various structural variations, including mini-master, master feeder, parallel, and segregated portfolio company. With an investor-friendly legal system and a fully developed business law based upon English common law, the Cayman Islands is the jurisdiction of choice for US fund managers seeking to attract institutional capital. RLG routinely counsels managers on the formation of category 4(3) funds, which requires a minimum initial investment of at least $100,000 by all investors, excluding persons connected to the investment manager. Our attorneys also consult on and assist in establishing category 4(4) funds, which allow open-ended funds with fewer than 15 investors to avoid CIMA registration.
Our Cayman Island fund formation services include:
- Drafting the Memorandum of Association and Articles of Association for the fund.
- Drafting the Offering Memorandum providing disclosures to fund investors regarding fund terms such as minimum investment amount, liquidity provisions, investment strategy, biographies of fund directors, and risks involved in an investment.
- Incorporating the fund company with the Registrar of Companies.
- Obtaining the Registered Agent and Registered Office for the fund.
- Preparing the Cayman Islands Monetary Authority application form.
- Certifying documents and liaising with the Cayman Islands Monetary Authority.
- Drafting the first minutes, appointment of directors, and primary corporate documents.
- Drafting the Investment Management agreement.
- Providing introductions to fund functionaries such as administrators, custodians, auditors, bankers and brokers.