The Luxembourg-Cayman parallel fund structure is increasingly a preferred product for sophisticated managers seeking to access European, US and Asian capital.
Parallel funds co-invest and divest alongside the main fund, usually on a pro-rata basis per their commitments, so a manager has two funds side by side which invest and divest at the same time in a common portfolio of assets. The terms on which the parallel fund operates are similar to the terms of the main fund, which means that the parallel fund has a common investment policy and common asset targets to the main fund. The differences between them are mainly due to regulatory or operational reasons.
You can view the full brochure here.
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.