Is there a right time to consider Voluntary Liquidation of a Cayman Islands registered fund?

There may be several good reasons for Investment Managers (IMs) to take this step, including:

  • Completion of the useful business purpose of the fund
  • Rationalization of dormant structures in the portfolio, or a new business focus
  • When the fund can no longer meet its investment objectives due to wider macro environment
  • Significant redemptions

When the time comes for winding up, what should an Investment Manager do? A simple first step is to appoint a Voluntary Liquidator who is best placed to ensure that the closing down of the fund is conducted with independence, fairness and transparency, and according to all legal requirements.

DMS Case Study:

This is a case study from our files that may assist in understanding the steps to take when voluntarily winding up your fund. DMS also provides liquidation of other vehicles such as Cayman LPs, SPVs and holding companies.

About the Fund:

Pre Voluntary Liquidation (VL):

Post VL Appointment:

Why choose DMS as your Voluntary Liquidator?

There are significant benefits to choosing DMS Corporate Services to coordinate your Voluntary Liquidations, strike offs and CIMA de-registrations, notably the value, professionalism and breadth of technical knowledge offered by our highly trained and experienced team. DMS Corporate Services also provides access to other DMS services should your wind down be particularly complex and contentious or requires ancillary services. DMS Bank & Trust can assist should you require banking/trust facilities, and our International Tax Compliance Group can assist with your FACTA compliance needs.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.