Investors unwise to rely on side-letter transacted with manager

Caymans court: question manager's authority and letter’s interaction with fund constitution

cayman-crest
Cayman ruling means investors check authorisation for side-letters

Side-letters are generally viewed by managers as a key fundraising tool by which they can bestow ‘most favoured nation status' fee rebates, preferential redemption terms and a host of other benefits in return for investments. However, the latest in a series of decisions from the courts of the Cayman Islands demonstrates that in many cases side-letters do neither investors nor managers much good.

Summary

In the matter of Lancelot Investors Fund, the investment manager and an investor had agreed a

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to copy this content. Please contact info@risk.net to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to Risk.net? View our subscription options

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here