(Cayman) A Guide to Taking Security over Capital Call Rights

The use of Cayman Islands exempted limited partnerships is commonplace in the private equity context. Some lenders have developed specific products known as "capital call facilities", "subscription facilities" or "equity bridge facilities" to provide short-term bridge financing for investments, ultimately financed from capital contributions from the limited partners of the fund. A key element is the security the lender will take from the general partner of the partnership over its rights to call for limited partner contributions and the proceeds of such calls.

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