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Investment & Hedge Fund Formation

Stuarts Humphries is a specialised investment funds firm and a leading provider of legal services to investment funds in the Cayman Islands. We have an experienced team of investment funds lawyers who offer world-class and in-depth market knowledge, understanding and expertise in relation to the investment funds market.

The Funds Team is recognised in many legal directories:

Chambers & Partners

"Some of the hardest-working partners you'll find in the offshore jurisdictions." Fund Client Testimonial

Legal 500

Stuarts Humphries has a 'knowledgeable and commercial practice' Publication Recognition

IFLR 1000

"Boutique firm offering prompt personal service and expertise covering a wide range of areas." Fund Client Testimonial

Read more testimonials

The Investment Funds Team

Our Investment Funds Team in the Cayman Islands is a market leader in advising managers on the set-up and establishment of a broad range of investment funds in the Cayman Islands, including hedge funds, real estate funds, private equity funds and funds focusing on blockchain, cryptocurrency and other digital assets strategies.

Our Investment Funds Team, (which includes recognised leaders in their field) provides offshore legal advice on fund formation, structures, regulation, de-registration, liquidation and on-going advice to investment funds, managers and institutional investors including the following:

Our specialist investment funds services cover a full range of fund structures including:

Watch our Investment Funds team video here:

Investment Funds Services

Open Ended

Our Investment Funds Team has an experienced and dedicated team of industry focused lawyers, recognised in their field, advising fund managers on the establishment and regulation of open ended funds in the Cayman Islands across the full range open-ended fund structures, including:

  • Fund of Funds
  • Fund Platforms
  • Crypto Funds
  • Hedge Funds
  • Master-Feeder Structures
  • Credit Funds
  • Hybrid Funds

In addition, we provide specialised related services and regulatory and compliance services to open-ended funds and their managers

Closed Ended

Our Investment Funds Team has extensive experience advising fund managers and institutional investors on all aspects of the establishment and regulation of closed-ended fund in the Cayman Islands, across a full range of structures including:

  • Private Equity Funds
  • Real Estate Funds
  • Venture Funds
  • Infrastructure Funds
  • Shariah-Compliant Funds
  • Hybrid Funds

In addition, we provide specialised related services and regulatory and compliance services to close-ended funds and their managers

Private Equity

Stuarts has a dedicated and enthusiastic team of professionals advising on all aspects of offshore private equity transactions in addition to fund formation, the formation of alternative investment vehicles, international leveraged buy outs and equity financing where the structure involves offshore jurisdictional advice. We assist in the implementation of IPOs, company sales or mergers and recapitalisation and advise on structuring, secured lending and due diligence.


Blockchain and Fintech Funds

The funds industry has undergone some significant changes in recent years as many investment managers seek to capitalise on the potentially huge gains associated with cryptocurrencies, blockchain and other digital assets. The Cayman Islands has fast become one of the leading markets for cryptocurrency funds and Security Token Offerings (STOs), and other digital and blockchain products in part due to its attractive regulatory environment.

See the following article on Trends and Developments in the Cayman Islands for Digital Assets.



Stuarts specialist funds team advise investment managers on the establishment of Cayman Islands investment management entities and ensuring they meet appropriate economic substance requirements as well as ongoing regulatory obligations set out in the Securities Investment Business Law of the Cayman Islands. 

Specifically, our team advises on:

  • Securities Investment Business Law: Investment managers establishing an entity in the Cayman Islands must comply with the regulatory requirements under the Securities Investment Business Law.  Stuarts will provide advise and guide you through these requirements.
  • Economic Substance:  Our funds attorneys advise on local economic substance requirements for fund managers and any appropriate outsourcing arrangements that may be required.  We advise on whether an entity is in scope of the substance rules and guide the directors in their consideration of the rules and any remediation plans. In order to facilitate our clients to meet their needs, Stuarts is able to offer a full range of services as a framework upon which our clients can build a physical presence in the Cayman Islands. See our Framework Office Service page for more information.
  • Immigration: Stuarts is also well placed to assist with the relocation of employees to the Cayman Islands and assist with work permit requirements and assist with other relocation needs. See our Immigration page for more information.
  • Special Economic Zone: Our specialist funds team assist Managers who wish to have a physical presence in the Cayman Islands to establishes themselves in the special economic zone in the Cayman Islands. See our Cayman Special Economic Zone page for more information.

Institutional Investors

Our Investment Funds Team has extensive experience advising institutional investors on all aspects of their participation in Cayman Islands funds, across a full range of structures including:

  • Negotiation of Side Letter
  • Advice in relation to the offering documents of funds and the conditional documents

Hedge Funds

Our hedge fund lawyers provide advice to some of the largest and most prestigious hedge fund clients on all aspects of the life-cycle of their hedge funds, including advising on downstream transactional matters.

Our hedge fund lawyers also advise on all legal aspects affecting the continuing operations of hedge funds, including specialist advice to hedge fund managers as well as contentious issues.

Restructuring and Recovery of Distressed Funds

Our Cayman funds attorneys provide restructuring advice to creditors, shareholders and other stakeholders of distressed funds and portfolio companies. We provide advice in relation to enforcement options to creditors and regularly advise liquidators, directors and shareholders of distressed funds.

Restructuring and Recovery of Distressed Funds 

Our Distressed Funds Team has been instructed in connection with many of the largest fund insolvency events in the Cayman Islands and the services offered include:

  • Advising funds and their directors on winding down or restructuring funds' affairs and the use of side pockets
  • Advising on the deregistration and liquidation of a broad range of investment funds
  • Advising on disputes between funds and investors on subscription terms and the interpretation of side letters
  • Acting for funds and service providers on NAV mis-pricing cases, claims against directors and audit negligence disputes
  • Acting for leverage providers and counter-parties to distressed funds

AML and Regulatory Services 

The scope of regulatory requirements in the Cayman Islands has increased significantly in recent years and requires Cayman-domiciled entities to meet ongoing regulatory filing requirements, in addition to other obligations as set out by the regulatory bodies of the Cayman Islands. By staying informed and seeking guidance from experts, Cayman entities can navigate the complexities of the regulatory landscape with clarity and ease. See our AML and Regulatory Services here.

Stuarts Investment Funds and Regulatory teams have extensive experience advising funds and other regulated entities in the Cayman Islands on corporate governance and compliance matters. Through our subsidiaries, Stuarts Corporate Services and Southern Management Services our team of experienced corporate professionals can provide you with a full suite of corporate governance and directorship services including Cayman resident directors and corporate secretarial services, to assist in meeting the ongoing regulatory obligations of your fund and regulated entities in the Cayman Islands.

Cayman Islands Investment Funds Industry

The Cayman Islands is the leading offshore centre for the establishment of institutional and hedge funds. There are currently approximately 11,000 open-ended, regulated funds registered with the Cayman Islands Monetary Authority (“CIMA”).

Click here to read our Investment Funds overview factsheet

Discuss your requirements with our investment funds lawyers in the Cayman Islands

If you would like to receive further information regarding Investment Funds Services in the Cayman Islands, please email: Chris Humphries, Jonathan McLean or Megan Wright.