Private Equity Funds made easier in the Cayman Islands
- serving on such boards or committees by such limited partner or their representative will be a "safe harbour" such that it shall not constitute taking part in the conduct of the business of the partnership (so as to make the limited partner liable as if they were a general partner);
- a limited partner's representative on any board or committee of the partnership (i) will be entitled to rely on the provisions of the LPA governing such committee (where previously they could not since they are not typically party to the LPA) and (ii) subject to the express provisions of the LPA, owes no fiduciary duty to the partnership or any partner; and
- subject to any contrary provisions of the LPA, a limited partner (acting in that capacity) owes no fiduciary duty to the partnership or any partner.
- simplification of the formalities surrounding execution of documents upon a first or subsequent closing of a private equity fund;
- the introduction of foreign script names (allowing a dual name for an ELP not using the Roman alphabet which may be of particular interest to Russian or Chinese managers or investors);
- simplified mechanisms in relation to partnership transfers and winding up;
- a simple abbreviated strike off procedure equivalent to that which already exists
- the ability to deregister an ELP with a view to migrating it to another jurisdiction; and
- the preservation of limited liability of the limited partners in the event of an ELP ceasing to have a qualifying general partner.
Published July 22, 2014
Join the discussion — please keep to our Community Guidelines.