General partners, authorized representatives, limited partners and investment managers are the main stakeholders of Limited Partnership Funds in HK. Each shoulders respective responsibilities and contributes differently to the fund. When it comes to a general partner, he or she has unlimited liability for all the debts and obligations of the fund. And if the general partners in Limited Partnership Funds are non-HK limited partnership without a legal personality, an authorized representative must be appointed. As for the authorized representative, he or she will be jointly liable with the general partner for all debts and obligations of the LPF. Regarding a limited partner, he or she neither owes any fiduciary duty to the general partner or any other limited partner in the LPF, nor is liable for debts and obligations of the LPF beyond the amount of the partner’s agreed contribution. Concerning an investment manager, it is incumbent upon them to conduct day-to-day investment management functions of the LPF.
Cayman Islands are an outstanding jurisdiction for forming alternative investment funds, with roughly 12,000 regulated close-ended and 12,000 open-ended funds. It is considered as a tax haven as it offers a highly attractive platform for foreign individuals and businesses to conduct offshore banking services without having to pay income taxes in their home countries. Cayman fund investment consultation is thus a popular service around the world. Experts on the laws and regulations in offshore jurisdictions provide clients with Cayman fund investment consultation and aim them in coping with the socio-economic environment in a more strategic way.