Cayman’s new private funds law

There are fund governance implications of Cayman’s new Private Funds (Amendment) Law. It will, amongst other changes, subject its private equity funds to registration for the first time.

Bill Prew, the CEO of Indos Financial, has written the following on this topic: ‘Governance practices in open-ended hedge fund strategies are generally regarded as being stronger than long term closed-ended fund structures, where investors are often content to invest in funds that do not have independent directors acting in their best interests or holding managers to account. Unlike open-ended funds, many closed-ended structures have historically fallen outside regulation. This is particularly true for private equity funds established in the Cayman Islands.

To read more on this story see the July issue of The NED.