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29 November 2017

Cayman fund structures: limited partnership vs. limited company

The Cayman Islands has become the most common domicile for most hedge funds these days. The increase in legal entity options has made deciding on legal formation more complicated than ever. The most common structure used to be a Cayman limited company (Ltd). However, since the introduction of the exempted limited partnership (LP) in 2014, EY has seen increased use of the Cayman LP structure. There are a number of reasons why new funds would consider launching a Cayman LP master fund rather than the more traditional Cayman limited company structure. This chart outlines some of the key considerations and differences when deciding between a Cayman LP or a Cayman Ltd.

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Document ID: 2017-6010

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