Wed, Aug 31, 2016
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

Cayman folks see increasing use of Limited Partnership structures for master funds

Thursday, March 13, 2014

amb
Darren Stainrod
Benedicte Gravrand, Opalesque Geneva:

A hedge fund industry development that was noted during the recent Opalesque Cayman Roundtable is the increasing use of Limited Partnership structures for master funds, whether via Delaware or Cayman. According to Darren Stainrod, Principal at HighWater Limited, a provider of professional directors and related services to the alternative investment industry, the use of the structure increased from 5% to 10% of launches to 30% to 40% of recent launches, as it is more suitable for U.S. investors for tax reasons.

"This creates an interesting situation from a corporate governance standpoint as traditionally we would sit on the boards of the Cayman feeder and the Cayman master," he explains. "Once that becomes a Delaware master or a Cayman LP master, then we typically have no responsibility, especially for U.S. managers who usually are the General Partner to the LP master."

He goes on to say that this creates a situation where directors are sitting on a feeder board without any insight or control over what takes place at the master level. To address this issue, he encourages managers to form an advisory committee; such a committee has powers with respect to the master fund, such as liquidity, suspensions, etc. although this area is evolving.

An advisory committee does not have the full fiduciary responsibility that a board of directors does, he adds, &quo......................

To view our full article Click here

Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing

 



  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. The Big Picture: Water is single largest environmental investment opportunity[more]

    Benedicte Gravrand, Opalesque Geneva: Water, the world’s most precious and undervalued commodity, is set to lead the socially and environmentally responsible investment themes. This is according to specialist fund manager Thomas Schumann. His firm,

  2. Commodities - Hedge funds pile into bullish bets on U.S. crude by most on record, Rig count steady, hedge funds dump short contracts on 63 million barrels, Hedge funds bail on Copper as Goldman predicts ‘supply storm’, Hedge funds pile up bets against sterling[more]

    Hedge funds pile into bullish bets on U.S. crude by most on record From BRecorder.com: Hedge funds and other speculators raised their bullish bets on US crude oil in the past week by the most on record fuelled by speculation that Organization of the Petroleum Exporting Countries will agr

  3. Investing - U.S. hedge fund Marathon makes Brexit bet on European property, Hedge funds love Liberty and John Malone, DE Shaw could bid for control over TerraForm Power, New York hedge fund increases stake in Tronc as sale talks continue, Don't wait too long to check this +20% value fund's ideas[more]

    U.S. hedge fund Marathon makes Brexit bet on European property From FT.com: Marathon, a $13bn US hedge fund, is building a big Brexit trade, increasing its investments in property across Ireland, France, Germany and the Netherlands, in a bet that they will be among the big beneficiaries

  4. Investing - Hedge funds express interest in acquiring Terraform's class B shares, REIFs: A new opportunity for foreign real estate investors, $21bn distressed expert hedge fund likes these 4 ideas, This merger arbitrage ETF is drawing increased interest, Investors look to emerging Asia for returns[more]

    Hedge funds express interest in acquiring Terraform's class B shares From Thecountrycaller.com: The US residential solar provider, Sunedison Inc. has received a bid from hedge fund manager D.E Shaw & Co LP for controlling a stake in its Yieldco TerraForm Power Inc. According to Reuters,

  5. Opalesque Exclusive: Investors struggle to identify the better performing hedge funds[more]

    Komfie Manalo, Opalesque Asia: Fund managers and investors believe that performance is one of the major factors driving change in the hedge fund industry, a Preqin survey showed in its latest Hedge Fund Spotlight. Preqin said that the disappoin