Private equity investment into Africa: The Cayman and Mauritius route

The invitation in December 2010 by China to South Africa to join the BRIC group of major emerging economies, to create the ‘BRICS’ acronym, has heralded a new dawn, not only for the nation of South Africa, but arguably for the continent of Africa as a whole.

Shariah compliant investment funds:

There is growing demand from investors domiciled in the Gulf Co-operative Council (GCC) region for investment portfolios that include Shariah compliant instruments. Although many sovereign wealth funds may invest in other noncompliant products, a growing part of their diverse portfolios is Shariah compliant.

Private fund performance after the Dodd-Frank Act

The American private fund industry is a significant representative of Wall Street’s interests and regulating hedge funds was a politically sensitive undertaking since the inception of the industry 

 

AIFMD: Taking stock and next steps


On 11 November 2010, after nearly two years of lobbying and debate, the European Parliament adopted the final text of the Alternative Investment Fund Managers Directive.

To list or not to list…Taking private equity public:

In a market traditionally focused on funds and banks, the Cayman Islands Stock Exchange (CSX) has recently expanded its services to support new issues and start-ups. The principal reason for seeking a listing is to raise new funds for establishing or growing a business.   

 

Updates further enhance Cayman’s appeal

The Cayman Islands has for decades been one of the world’s leading banking and financial centers, currently ranking as the fifth largest banking centre worldwide, with over 200 banks, including 40 of the world’s 50 largest banks, and over US$1.5 trillion in assets. 

 

The Financial Services Legislative Committee

Over the years, in fact for the whole period leading up to Cayman achieving its position as a leading offshore jurisdiction for institutional clients, one of our strongest selling points was that our private and public sectors worked together to draft bespoke legislation to meet the ever-changing needs of the financial market.

Does location matter?

The world has become global and this not only on business and private sides, but also family offices are seeking increasingly to get the most out of this international playing field at their hand.   

 

Innovation and change in the director services industry

Legislative changes introduced director registration or licensing requirements and new regulations. In addition, law firms started to spin off their administration divisions and private equity and other buyers entered the market.

 

Taking the softly softly approach

During the course of the fund industry’s slow yet sure recovery from the fallout of the global credit crisis, it has become increasingly apparent that prudently structured investment funds of all types should strongly consider including provisions in their constitutional documentation contemplating a “soft wind down”.

Beware of unwanted side effects from side letters

In the current competitive hedge fund marketplace the use of side letters between investors and funds has become commonplace. Side letters are used by funds and fund managers to draw in investors who jockey for the most favourable terms possible.   

 

‘Can do’ approach heralds a settlement for Madoff investors

The recently court appointed principal liquidators of a Cayman Islands registered Madoff feeder fund, Herald Fund SPC (In Official Liquidation), immediately began a ‘hearts and minds’ campaign aimed at establishing trust with the trustee.   

 

Know your score and get to the “sweet spot”: The importance of business...

This article discusses the importance of business process automation within an asset management firm at all stages of development and how these organisations can measure their current processes versus investor expectations.

Conflicts of interest between investment managers and their investors:

All investment management firms need to pay very careful attention to a recent paper issued by the UK’s Financial Services Authority (FSA) concerning the management of conflicts of interest between asset management firms and their customers.  

 

Fund governance: The trend toward split boards

This industry trend is being driven by investors who consider that the challenges of such a model are far outweighed by the benefits provided to them by a board that will be more effective in all situations. 

 

Be careful what you wish for…

The recent decision of the Financial Services Division of the Grand Court of the Cayman Islands in the matter of the Weavering Macro Fixed Income Fund Limited was met with a wall of noise from the industry in the Cayman Islands. Although that of itself was no surprise, the particular tone of that noise was surprising to me at least.

Into the spotlight: Independent fund directors

Independent directors and non executive directors have come into the spotlight in recent years following the well reported failings of firms such as Weavering Capital.  In earlier examples, Beacon Hill Asset Management and Bear Stearns High Grade Structured Credit’s offshore fund directors were singled out for criticism for failing in their duties. 

Green Climate Fund; evolution or revolution in climate finance ?

It is universally accepted that it is not possible for such large amounts of money to be mobilized by efforts of the public sector alone. A step change in the current state of climate finance with the inclusion of the private sector is essential to achieving this. A metaphorical revolution in climate finance is needed.

 

Unit trusts: Forget-me-not

Read our article in the Cayman Financial Review Magazine, eversion The structuring of investment funds as unit trusts has been and continues to be the...

Where there’s smoke, is there fire? Some red flags in hedge fund fraud

We have identified certain red flags that we have seen in more than one situation and provide some practical guidance that investors may wish to consider to mitigate the risk of being victims of a fraud. 

 

 

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