Where to domicile – part 2: Delaware and Cayman

Views on the two most popular domiciles among US funds.

One tech provider recently told me they are hearing of some PE funds pushing for a hurdle rate that is linked to a floating interest rate index (such as LIBOR) rather than the conventional 8 percent. I’d be really interested to hear from anyone with more information on this: toby.m@peimedia.com.

Elsewhere, the pendulum of public and political opinion seems like it may be swinging against private equity once more, per comments from the UK’s industry body chief at this morning’s BVCA Summit: “This is where citizens, consumers and parliamentarians are looking at us and our businesses and wondering what we do beyond jobs and investments.”

As part of our October fund domiciles guide on the site today, we have local experts making the cases for Delaware (“You can have the parties agree to most anything and it is generally enforceable”) and the Cayman Islands (“There has also been a spike in the use of parallel funds – often established in Luxembourg”).

Also, Private Funds CFO’s Philippa Kent is the BVCA Summit in London today – reach out to her if you are there.

Email prepared by Toby Mitchenall.