Cayman LP issues

Speaking at IFI Global’s recent New York conference Debra Franzese, a Partner with the US law firm Seward & Kissel, said that she sees a growing number of master-feeder structures with Cayman LPs at the master level, as opposed to the traditional Cayman corporate structure. She said that this is being done for various reasons, including making accounting procedures easier.

But it does raise governance issues. Debra Franzese added that this development is making investors fear that the governance is lacking at the master fund level, which is the key entity. That is the entity that is responsible for valuations or the suspension of redemptions, for example.

To read more on this story see the April edition of The NED.