Cayman Structured Finance Solutions *
Our structured finance team specializes in providing fiduciary management and administration services to Special Purpose Vehicles (SPVs), established for structured finance and investment transactions.
Through trust structures, FundBank supports clients in ringfencing assets within an SPV, ensuring robust governance, compliance, and legal separation from the parent entity. Whether for securitization, debt issuance, or pooled investment, FundBank delivers flexible fiduciary solutions tailored to each transaction.
Special Purpose Vehicles
Our trust structures are commonly utilized in Cayman structured finance transactions. Corporate assets are placed in a . The SPV is then settled into a trust. The usual objective being to ringfence higher risk assets within the SPV, rather than in the parent company. This ensures a flexible and compliant approach to structured finance transactions.
An SPV may also be used as a holding company for the securitization of debt. Or by venture capitalists, to amalgamate a pool of capital, which is then used for investment purposes.
Approaches to SPV Structuring
SPVs generally involve two options:
- “On-balance sheet”
- “Off-balance sheet” (orphan) SPV structures
On-Balance Sheet Companies
The ultimate beneficiary creates a wholly owned SPV to take ownership of the asset but retains direct control of the SPV (consolidating the SPV onto the parent’s balance sheet).
FundBank can assist in providing a Cayman Registered Office, offshore company, and governance for the SPV.
Orphan Trusts
“Off-balance sheet” SPVs are commonly used in structured finance and secured transaction arrangements to achieve legal and accounting separation from the sponsoring entity. In these cases, the shares of the SPV are typically held by a corporate trustee under an “orphan trust” structure, rather than by the sponsor or beneficiary directly.
This approach helps:
- Isolate financial and legal risk by ensuring the SPV’s assets and liabilities are not consolidated with the sponsor’s balance sheet
- Protect the integrity of the investment structure by reducing the risk of creditor claims or attempts to “pierce the corporate veil”
- Support regulatory, capital, or bankruptcy-remote treatment, depending on the transaction’s objectives
Commonly used vehicles in orphan trust structures include Charitable Trusts, STAR Trusts, and Cayman Foundation Companies, each offering specific advantages depending on the complexity and purpose of the transaction.
Whether you require an offshore orphan trust SPV for structured finance, asset-backed securities, risk transfer, or insolvency remoteness, FundBank provides trustee and independent director services to meet regulatory, operational, and investor expectations.
Why Choose FundBank
At FundBank Fiduciary Services, we offer more than just technical competence – we deliver trusted partnership grounded in deep industry experience, global perspective, and operational insight.
To find out more about our institutional banking services, please reach out to your usual FundBank representative or contact us below.