Offshore fund disputes
Arising from factors such as trading losses, illiquidity, misevaluation and mismanagement, fund-related disputes are a common feature of the international commercial landscape. Complex by nature, funds experiencing distress require a team of dedicated fund dispute lawyers who are well rehearsed in this specialist area to resolve them.
An offshore fund dispute can often include multiple parties, intricate contractual agreements, intricate financial structures, and regulatory considerations. Navigating through such complexities requires specialised offshore fund disputes knowledge and experience in both investment funds law and dispute resolution.
Fund dispute lawyers
Appleby’s Fund Disputes team is an industry leader, being one of the few offshore firms to field a specialist team dealing with fund disputes, and having been involved in a number of high-profile offshore fund disputes proceedings. Our team of highly skilled and talented fund disputes lawyers have experience that covers all types of funds, including corporate funds, limited partnerships, unit trusts, regulated mutual funds, closed-ended funds and private equity funds.
We act for a wide range of parties involved in fund-related matters, including office-holders, directors, auditors, investment managers, shareholders and creditors.
We regularly provide advice and assistance regarding matters such as:
- Redemption issues
- Shareholders’ rights
- Directors’ liabilities
- Enforceability of side letters
- Disputes between service providers
- Valuation issues
- Fraud and mismanagement of fund assets
- Restructuring distressed funds
- Winding up and dissolution of insolvent funds
Client experience
Representative Work
Advising and representing liquidators
Advising and representing the liquidators in relation to their actions to recover losses for investors who lost US$1.5 billion in the collapse of Bear Stearns subprime-invested hedge fund, the largest and highest-profile hedge fund collapse arising out of the subprime mortgage crisis
Acting for Phoenix Meridian Equity Ltd.
Acting for Phoenix Meridian Equity Ltd. in the first Cayman Islands case on misvaluation to go to trial, raising unprecedented issues about construction of fund investment documentation, and the obligation of funds to disclose underlying hedging transaction costs to investors
Advising Gottex Fund Management Sarl
Advising Gottex Fund Management Sarl on its attempt to redeem a US$40 million investment in CPIM Structured Credit Fund and its challenge through the Cayman Islands Court of the fund’s retrospective imposition of a ‘gate’ on its redemption notice to block the payment of redemption proceeds.
Spotlight
Cayman fund disputes
Our Cayman Islands office provides specialist Cayman fund disputes legal advice. With decades of experience between them, our fund disputes lawyers in Cayman are experts in navigating the complex nature of funds experiencing distress. Indeed, their Cayman fund dispute expertise was highlighted in the latest edition of The Legal 500 Caribbean legal directory, with researchers noting that “Appleby’s ‘excellent strength across the whole team’ ensures that it is sought out by a stellar line-up of international corporate clients for representation in high-stakes fund disputes, winding-up proceedings, and contractual enforcement matters”.
