Editor: Please explain the present environment for Cayman Islands investment fund structures.
Isbister: The current environment for Cayman Islands investmentmutual fund structures is the best it has been because completion of the global monetary crisis. We are seeing a number of brand-new quality startup hedge fund managers developing new items, and institutional clients have actually been busy on the fund development side as well. The most popular hedge fund structure has actually been the master-feeder structure, which has a Delaware domiciled feeder fund and a Cayman offshore feeder fund both investing into a Cayman master fund. We are also assisting clients with a variety of mini-master structures and some stand-alone funds. On the private equity side, the Cayman exempted restricted partnership remains to be the favored automobile of choice for US supervisors wanting to develop overseas private equity funds. This preference was enhanced due to the current modifications to the Exempted Limited Partnership Law, 2014which is now similar in many respects to the Delaware partnership model.
Editor: Exactly what advantages can multinationals enjoy in making use of Cayman offshore structures? Exactly what is your duty?
Burch: Cayman is a sophisticated, regulated jurisdiction that abides by worldwide standards, in some cases exceeding them, similar to our anti-money-laundering program. At the forefront with respect to FATCA, Cayman has signed the Model 1 Intergovernmental Contract (IGA) and presented its own legislation. Customers also value dealing with a tax and exchange control-neutral jurisdiction, well put within the United States time zone. Cayman business offer flexibility, including no required minimum capitalization and the capability to pay dividends from business revenues or from share premium, and there is no requirement for Cayman-resident directors. Cayman offers a number of reputable structures for capital raising through bond issuances and protected financing as well as a strong finance pedigree familiar to sophisticated investors.
Our role is as the facilitator of a smooth process. Onshore and internal counsel face serious pressure in negotiating high-level transactions and we needhave to provide precise commercial solutions with unrivaled responsiveness to ensure expectations are met and hopefully surpassed. We hire from leading magic circle firms to ensure our lawyers have a high level of technical knowledge, which is required and valued by our clients. Busy corporate counsel want prepared access to info on their Cayman business and, as required, the capability to speak to their counsel at all times; for that reason, our firm provides 24-hour coverage from numerous workplaces all over the world plus an ingenious online portal that supplies clients with protected, real-time access to their corporate info. We intend to tailor solutions to the requirements of our customers, and they understand we can be relied upon to deliver exactly what we promise.
Editor: Lets talk more about regulation.
Dawson: In an ever more regulated environment internationally, Cayman strives to be at the forefront of tax and regulatory compliance while servicing its company energy. Guaranteeing FATCA compliance by Cayman entities is an apparent challenge. However, the Cayman government and service companies are working hard to reactreply to FATCA requirements and to put in place effective and responsive systems and legislation.
On a deal-by-deal basis, the regulatory evaluation depends on the type of offshore company that is looked for to be undertaken, be it establishing investmentmutual fund, financing arrangements, or structuring international Mamp; A deals. In Cayman, every regulated activity has its own main legislation, and care requirementshave to be taken to guarantee that putting in place a particular structure in accordance with one law does not lead to inadvertent breach of another. For instance, a group may develop a Cayman entity to act as basic partner to a collaboration, and after that for performances later make use of the same entity as a financial investment management automobile, thereby unknowingly bringing it within the remit of Cayman securities laws and possible licensing or registration requirements for the car and its directors. Our regulative group was created with these problems in mind and works closely with our customers on their transactions to ensure regulatory compliance whilst delivering the industrial, useful solutions looked for.
Editor: Mourant Ozannes is widely acknowledged as a leading offshore company. Whats your top-line outlook for 2015?
Isbister: In coveringconcluding, I will certainly describe the infographic supplied here, which offers a good introduction of our firms reach, abilities and reputation, consisting of many market honors. We are optimistic about the year ahead as we anticipate the positive investmentmutual fund and corporate transactional operations to continue. To deal with this added workflow, we have hired more lawyers, and further team growth is preparedprepared for us in Cayman.
For additional information about Mourant Ozannes, please visitwww.mourantozannes.com.