Snapshot: private fund registration – what have we learnt? – Lexology

Posted: January 9, 2021 at 2:38 pm

Private equity sponsors, investors, lenders and service providers will be well aware of the Cayman Islands' prominence as a domicile for global private equity funds. For the best part of 20 years, sponsors and their global advisers have been attracted by the Cayman Islands' neutrality, efficiency, quality and flexibility but also by its predictability.

So when, at the prompting of the European Union, the Cayman Islands announced in early 2020 that all Cayman-domiciled closed-ended funds (including private equity and real estate funds) would be required to register with the Cayman Islands Monetary Authority (CIMA) by August 2020, this seemed like a shake-up.

Now that the dust has settled, what lessons have been learned?

The three unknowns are:

For this unusual year, it feels fitting to mandate private equity funds to accept a new normal. That so many thousands have done so says something about the resilience of Cayman private equity structures and perhaps even human nature.

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Snapshot: private fund registration - what have we learnt? - Lexology

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