• Prevailing market conditions – Despite continuing global geo-political risks and uncertainty, private equity continues to deliver strong returns aided in no small part by the prevailing climate of low interest rates. Asset prices have consistently risen as large pools of yield hungry private equity backed cash have sought out limited quality assets.
  • Private equity still an attractive proposition to investors – The private equity model remains attractive to investors resulting in significant quantities of dry powder in the market ready to be deployed.
  • Recent offshore trends – Cayman – The sheer size of private equity funds being raised is ever increasing. This has resulted in ever larger M&A deals with private equity backing/involvement. With deals valued at over USD60 billion in the first half of 2018 alone and Cayman Islands companies being the target of 421 transactions, the Cayman Islands, by deal volume, ranks as the number one offshore jurisdiction for M&A transactions with considerable private equity capital backing those deals. Deals are typically structured via a statutory merger, (ii) a scheme of arrangement and/or (iii) a tender offer.
  • A focus on the offshore fiduciary space – Ever increasing interest in the sector by private equity is resulting in aggressive consolidation in the fiduciary space. Examples include (i) the disposal by TMF Group, a global provider of compliance and administration services, to CBC partners for total consideration of $1.75 billion and (ii) Apex Group Ltd. and Genstar Capital acquiring the Deutsche Bank Alternative Fund Services business. Fiduciary assets are attractive to private equity given the strong recurring cash flows derived from annuity like revenues and the opportunity to apply rigorous management methods. These deals are almost exclusively cross-border often involving Cayman Islands structures highlighting the importance of careful structuring.

The full article can be found here.

Share
Twitter LinkedIn Email Save as PDF
More Publications
4 Dec 2019 |

Revised Draft Guidance on Economic Substance in the Cayman Islands

The Cayman Islands continue to meet and exceed international compliance standards in a proactive and...

28 Nov 2019 |

Cayman Islands Funds update

This article provides details on the recent changes to the Cayman Islands Securities Investment Busi...

20 Nov 2019 |

Offshore region records busiest start to the year for M&A activity over past five years

The offshore region recorded more M&A transactions in the first half of 2019 than in the same time p...

22 Oct 2019 |

Show Me the Money: Identification and Preservation of Assets in the Cayman Islands

The Cayman Islands has long had a developed arbitration framework providing for the recognition and ...

Contributors: Mehreen Siddiqui
21 Oct 2019 |

Cayman Regulatory Newsletter Q4 2019

Appleby Cayman is pleased to introduce our new Regulatory Newsletter. The first edition of this quar...

17 Oct 2019 |

Hot Topics

The Cayman Islands’ Data Protection Law, 2017 (DPL) came into force on 30 September 2019. Cayman e...

17 Oct 2019 |

Economic Substance

The Cayman Islands’ International Tax Co-operation (Economic Substance) Law, 2018 (ES Law) and The...

20 Sep 2019 |

How fund managers should prepare for the Cayman Islands Data Protection Law

The Cayman Islands Data Protection Law, 2017 (DPL) comes into force on 30 September 2019 and will re...

18 Sep 2019 |

When will foreign court - appointed receivers be recognized?

When will foreign court - appointed receivers be recognized?

18 Sep 2019 |

Offshore listing Vehicles to benefit from the Shanghai - London stock connect

Offshore listing Vehicles to benefit from the Shanghai - London stock connect

Contributors: Huiyan Liew