Middle East focus: The use of cell structures as family investment structures

At Ogier, we have seen an active trend from families based in the Middle East wishing to restructure their investment portfolios to enable the assets to be managed more effectively and to address the needs of successive generations.

In each of our jurisdictions, the structures of choice are often cell companies (otherwise called segregated portfolio companies). Cell companies enable the segregation of investments into separate cells which will hold distinct asset classes. Each cell can appoint asset-specialists to manage the assets. They also enable the segregation of family branches into separate cells, enabling each branch to have more control over their own investment portfolios.

Cell companies provide a number of advantages. The relevant legislation provides that creditors of a cell shall have recourse only to the assets of that cell and not to the assets of the cell company or of any other cell. In addition, cell companies create platforms which can benefit from streamlined running costs, the ease of administration, the adoption of a centralised governance structure and bespoke reporting.

Where necessary, cell companies can be structured as private funds, enabling families to invest alongside other families, key employees or third parties. 

Our specialist team works closely with the existing advisers to the families in order to advise on the most appropriate structure. 

Find out more about cell companies in some of our other jurisdictions:

Jersey Protected Cell Companies and Incorporated Cell Companies

Segregated Portfolio Companies in the Cayman Islands

Segregated Portfolio Companies in the BVI

Guernsey Cellular Companies

About Ogier

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Disclaimer

This client briefing has been prepared for clients and professional associates of Ogier. The information and expressions of opinion which it contains are not intended to be a comprehensive study or to provide legal advice and should not be treated as a substitute for specific advice concerning individual situations.

Regulatory information can be found under Legal Notice