All services Fund and Asset Managers Private and Institutional Asset Owners Debt, Capital Markets and Corporate

The merits of Cayman and Luxembourg parallel funds for Asian managers

30 Nov 2023

In recent years, we’ve been seeing increased interest from Asian managers in combined Cayman Islands and Luxembourg vehicles when targeting both EU and Asian (and potentially U.S.) investors.

While Cayman remains the predominant go-to domicile for Asian managers raising funds through private placement, Luxembourg is an attractive choice when a more global offer – specifically including European investors – is considered.

Of course, there is an increasing array of leading domiciles on the scene for Asian managers to choose from, including Hong Kong, Singapore, Delaware and others depending on where investors are located. However, when it comes to marketing in Europe, managers will often look for a jurisdiction that can take advantage of an EU marketing passport under the Alternative Investment Fund Managers Directive (AIFMD).

In order to overcome regulatory, tax and other differences of jurisdictions where investors are located, use of parallel fund structures may be the appropriate choice rather than a structure domiciled in one jurisdiction only. However, the benefits of opting for such a structure must be weighed up against the additional costs and operational complexities of managing two funds based in different locations.

In a new whitepaper co-produced by IQ-EQ and Ogier, we discuss the nature and benefits of parallel fund structures, explore key considerations when opting for such a structure, and examine Cayman and Luxembourg as jurisdictions of choice for parallel funds.

Download the whitepaper

Working with IQ-EQ has been seamless – you and your team understand our business, advise us appropriately, and handle your side of our collective partnership so that we can focus on making good investment decisions. Evan Gibson SVP, Merchants Capital

Get in touch with us today

We’re ready to listen.

Make an enquiry

Interested in joining our team?

We are always on the lookout for passionate people that possess IQ and EQ to join our growing team.

View job vacancies