Investment Funds

Our dedicated BVI and Cayman Investment Funds Team in the BVI and Cayman works with managers of offshore hedge funds and private equity funds to help them establish and structure their offshore investment vehicles to best meet their strategies and the requirements of their investors. We advise on all aspects of the life of a BVI or Cayman fund including formation, restructuring and closure both in distressed and planned scenarios. Our team has unrivalled experience and depth in the BVI with a strong and growing reputation in the Cayman Islands for the quality and timeliness of our advice. With a client base that includes a majority of the largest and most respected managers with fund structures in the BVI as well as up and coming stars of the industry and the respect of the leading law firms in the global funds industry, our Investment Funds Team provides managers with quality advice on all aspects of their BVI and Cayman Islands funds.  

Hedge Fund and Private Equity Fund Formation

We have over 20 years experience of establishing offshore funds and have been the leading law firm in the BVI for the establishment of fund structures throughout that time. We work both directly with managers and with leading onshore law firms to establish BVI and Cayman Islands fund structures for the largest institutional managers through to start-up managers with seed capital. We are experienced in providing funds structured using all forms of investment vehicle, including companies, limited partnerships, unit trusts and segregated portfolio companies and are at the forefront of designing innovative structures, including to deal with mixed liquidity portfolios. We are also highly experienced in advising on the issues surrounding the use of side letters for individual investors.  

Fund Restructuring

One of our core strengths is our experience in dealing with changes to a fund’s structure during the life of a fund. These are usually necessitated by a planned expansion in the fund or a liquidity issue within the portfolio. Such changes are often complex and require a careful consideration of existing rights of investors and obligations of the fund, its directors and agents.

Such restructurings commonly involve the creation of side pockets to isolate the effect of individual asset illiquidity. We have been involved in some of the most complex and high profile restructurings caused by recent liquidity issues in the market. Funds with extreme liquidity issues are handled by our Distressed Funds Group. 

Manager and Administrator Formation

We also provide advice and assistance to those wishing to establish a fund manager or administrator in the BVI and the Cayman Islands and to established managers and administrators wishing to provide services to BVI and Cayman Islands funds. This includes advising on the licensing requirements and ongoing obligations for domiciled and non-domiciled managers and administrators and advising on their service contracts with the funds.  

Manager and Administrator Transfers of Control

We are increasingly asked to advise on the sale of regulated managers and administrators alongside leading onshore law firms. We have experience in dealing with all aspects of the transfers, including the regulatory, legal and commercial issues involved in such transfers. Examples include the sale of the Key Asset Management Group to Swedish Bank SEB (advised by Norton Rose and Slaughter & May respectively) and the sale of two regulated managers to an Andorran Bank.  

Regulatory Consents and Fund Investments

We advise on all aspects of investment funds business, including obtaining regulatory consents and advising on and issuing opinions in relation to transactions entered into by funds, including ISDA agreements and structured investments. A high profile example of such advice was the cashbox underwriting scheme used for a fundraising by Misys plc where we advised ValueAct Capital (a BVI domiciled hedge fund) alongside Freshfields, Allen & Overy and Ashursts.

Contact Tim Clipstone, Ross Munro or Kieron O’Rourke for more on Investment Funds.