Fund formation

We work 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.

One of our core strengths is our experience in dealing with changes to a fund’s structure during the life of a fund. These may be 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. Restructurings commonly involve the creation of side pockets to isolate the effect of individual asset illiquidity.

We have been involved in many of the largest and most complex restructurings and cases arising out of recent market events including advising on many issues coming out of the Madoff affair and other high profile fraud cases involving BVI and Cayman funds. We have deep expertise in the formulation of strategies that provide solid legal and commercially viable solutions for funds, managers, investors and liquidators to deal with the challenges posed by distressed or failed investment funds.

Fund formation