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
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.
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Investment funds with high net worth individuals as investors will need to have a client agreement with their high net worth investors.
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