One of the common threads that runs through the granting of security over Cayman and Luxembourg property, be it capital call rights under an LPA, bank accounts or shares/interests in CayLux vehicles, is that neither jurisdiction has a central register or forum where a party is required to ‘file’ the security interest with a state body - either for reasons of priority or by way of placing third parties on notice.
New lenders in the market (of which there have been many in recent years!) and their internal legal counsel often find this fact slightly odd when compared to jurisdictions with public filing systems. Accordingly, the differences between what the laws of Cayman or Luxembourg provide for when compared to the security arrangements that are put in place in other jurisdictions is a common discussion topic when new entrants are getting comfortable with non-US vehicles appearing in their deals.
The absence of public or post-closing filings for security registration does not however mean that the laws of Cayman and Luxembourg have nothing to say on the interests of secured creditors. This note summarizes the most frequently seen intersections of the laws of Cayman and Luxembourg with security taken as part of fund finance deals.
With the growth of fund finance, the Mourant team have all observed cross-over between areas such as securitisation, structured finance, and the insurance sector, blurring the lines between historically separate areas. The next frontier is rapidly coming into focus: crypto. Luxembourg is consistently at the forefront of financial innovation and has already adopted a strong legal framework on virtual assets, paving the way to fund tokenisation in a fund finance context. While crypto presents some challenges to fund finance, it may also provide some novel solutions.
The new episode of the Praxio Fund Finance Expert Talk hosted by Michael Mbayi, with Ian Wiese, Managing Director at Barings is available!
This week Charlotte partner Trent Lindsay, special counsel Eric Worthington and associate Kayla Culver connect with Mike Wiederecht and Matt Ziemer, Managing Directors at PNC Bank.
Based in New York, Mike has over 13 years of banking experience, and a degree in finance and mathematics from the University of Notre Dame. With PNC since 2014, Matt is based in Philadelphia and has a degree in economics and sociology from Washington and Lee University.
The second edition of the Working Guide to Fund Finance, published by Brickfield, is now available in PDF and print format.
The Fund Finance Association recently hosted its 7th Annual Asia-Pacific Fund Finance Symposium on November 6, 2025.
The Mourant team summarises the top takeaways from the event as speakers reflected on the year that was - and what lies ahead.
The credit parties under a subscription credit facility may require flexibility in providing funds to their portfolio companies. Instead of using their own capital to make an equity investment in one of their portfolio companies or making an interfund loan, the credit parties may request that lenders under the subscription credit facility provide loans directly to their portfolio companies. Most lenders will accommodate this request by permitting portfolio companies to borrow under the credit agreement as “qualified borrowers” while other lenders will provide the requested funds through a separate portfolio company loan agreement.
This article will provide an overview of qualified borrower mechanics in a traditional subscription credit facility versus establishing a separate portfolio company loan agreement.
In the latest installment of our U.S. Bank Quarterly Survey, we review the current banking landscape and its historical context with two questions in mind: First, what do bank fundamentals tell us about the state of the U.S. economy (recognizing that this is a retrospective or coincident analysis)? And, second, what can we infer about the capacity and willingness of banks to extend credit (a more forward-looking inquiry)?