A Special Advertorial Section for ‘Grand Cayman Magazine’

Cayman RISING

New Jobs, New Projects, & New Opportunities

100

It’s a time of change and transformation. While the prolongedworldwide recession left few countries unscathed, including theCayman Islands, there is good news on the horizon.

In the wake of the financial meltdown, few countries are as positivelypositioned as the Cayman Islands to strengthen, diversify, and trans-form its economic landscape.

Major private sector projects, along with a number of government ini-tiatives, are poised to bring thousands of new jobs, new opportunitiesand substantial economic growth to these shores.

Ready-to-go projects include Dr. Devi Shetty’s healthcare city, the mul-tiple developments of the Dart group, the establishment of a specialeconomic “free zone,” construction of luxury condominium develop-ments such as WaterColours, and the recapitalization and multi-mil-lion dollar refurbishment of the Marriott Beach Resort, to name a few.

These sizeable projects will transform the nation, building a morediverse economy, and a brighter, more prosperous future. In short, thesemulti-faceted developments will give rise to a new era for Cayman.

HEALTHCARE CITYOne of the most far-reaching projects that will spur economic growthis the groundbreaking Narayana Cayman University Medical Center,which is moving forward in 2012.

Cayman’s healthcare city is the vision of Dr. Devi Shetty. The world-renowned Indian philanthropist and heart surgeon revolutionized med-ical care in India, where he introduced high-quality, high-volume, low-cost private hospitals.

Late last year, developers finalized the purchase of the site in the districtof East End, a major step for the multiple-phase 15-year project. Thesite will eventually include a 2,000-bed hospital, medical research unit,assisted living homes, a biotech research center, and a medical educationfacility. The first phase is expected to break ground mid-year, with 150beds slated to open in 2013.

The $2-billion project will greatly contribute to the economic health ofthe country, and the health of its citizenry, by creating jobs, diversifyingthe economy, and providing vast research and education opportunitiesnow, and well into the future.

DART INTERESTSIt’s the largest public-private sector agreement in the history of theCayman Islands. The landmark deal struck in 2011 between governmentand the Dart Group is expected to move forward this year in the formof new hotels, roadways, and other infrastructure, and social and cultur-al enhancements. Dart plans to invest $1.2 billion over the next 30 years.

Among the projects on tap is the redevelopment of the former CourtyardMarriott Hotel. The project requires moving 2,000 feet of West Bay

101

Road to develop it into a new four or five starresort, which will become beachfront property.Dart is funding the extension of the EsterlyTibbetts Highway into West Bay, including landpurchase and construction of the new road.

It has also committed funding for a number ofcommunity projects including schools, districtparks, and affordable homes. Dart will also cap andremediate the George Town landfill and provideland for a new solid waste management site inBodden Town that will be operated by government.

Plans are also under way to build out more of itsplanned residential phases in Camana Bay, creatingjobs and new opportunities for local businesses.

It is a significant partnership that is future-focused,with the best interests of Cayman in mind.

DEVELOPMENT AND REVITALIZATIONSeveral luxury developments on island are pick-ing up steam this year. Among them: Oceana,located on the waterfront in South Sound nearGeorge Town; construction of 28 beachfrontresidences at Rum Point Club Condominiums;

and WaterColours, a luxury, nine-storey con-dominium project on Seven Mile Beach.

The Grand Cayman Marriott Beach Resort willalso be transformed in 2012. Private Equity Groupbecame partial owners of the resort last year, andhas committed $15 million to refurbish the prop-erty. Work is expected to begin this summer.

The resort’s 295 guest rooms will all be reno-vated, as well as the corridors, lobby, ballroom,meeting rooms, restaurants, and landscaping.The recapitalization of the Seven Mile Beachresort is another encouraging sign that the islandis poised for growth and transformation.

ENTERPRISE CITYAnother new “city” is ready to spring up inCayman. The proposed Cayman EnterpriseCity is a special economic zone that is expectedto create thousands of jobs and attract new glob-al investment.

The commercial business park will focus onknowledge and technology industries such as IT,bioscience, and communications.

Among the benefits for companies setting up inthis zone: no income tax, no corporate tax, nocapital gains tax, 100 per cent foreign ownership,100 per cent repatriation of profits, reduced workpermit fees and no import duties on most items.

The developer intends to build 500,000 square feetof leasable space in phases during the next decade.Special economic zones are found throughout theworld, and Cayman Enterprise City would be thefirst of its kind in the Caribbean.

PORT DEVELOPMENTSophisticated and up-to-date infrastructure is keyto remaining competitive in the tourism market,making the need for a cruise ship berthing facil-ity in the downtown harbor a priority.

Premier McKeeva Bush signed an extension toa Memorandum of Understanding with theChina Harbour Engineering Company late lastyear to finance and build the $300 million port.

The plan is to expand the dock to allow largecruise ships direct access, thus eliminating theneed to use smaller tender boats to ferry pas-

Ready-to-go projects include Dr. Devi Shetty’s healthcare city,

the multiple developments of the Dart group,

the establishment of a special economic

“free zone,” and construction

of luxury condominium

developments such asWaterColours

C A Y M A N R I S I N G

102

The planned housing community at Camana Bay.

C A Y M A N R I S I N G

sengers from the cruise ship to the harbor. Portfacilities would enhance Cayman’s competitiveedge as the cruise lines choose to go where theirpassengers have the best experience – and thatincludes destinations with piers.

While the number of cruise visitors has declined,an encouraging sign is air passenger arrivals havebeen steadily growing for more than a year.

POISED FOR GROWTHCayman’s financial services sector is poised forgrowth. A recent push to attract reinsurancecapital to Cayman will broaden the island’sfinancial scope, luring new business and creat-ing a wealth of opportunity. Government is put-ting in place a range of incentives and enhancedregulations to attract new business.Amendments to the Cayman Islands InsuranceLaw 2010 will likely include immigrationincentives for the reinsurance industry, such as10-year work permits, reduced permit fees, andfaster processing of applications.

While Cayman’s hedge fund industry experi-enced losses to lower-cost countries, adminis-trators are seeing an upturn in the market andare planning for growth. And, like the reinsur-ance industry, the government is courting newbusiness through such incentives as immigrationconcessions to smooth the path for the indus-try. The country remains an attractive jurisdic-tion for the fund administration, drawing high-level professionals and boasting a range of com-plementary professional service providers such aslaw firms and the banking sector.

From hedge funds to healthcare, from newhotels to new industry, Cayman’s economic out-look is on the rise once again.

Port facilities wouldenhance Cayman’s competitive edge as the cruise lineschoose to go wheretheir passengers have the best experience.

103

Dr. Shetty’s ‘Healthcare City’ will break ground this year.

Cayman Enterprise City is planned for Savannah.

A new downtown port will be built for visiting cruise ships.

In 1995 Dart Realty (Cayman) Ltd. openedits doors in the Cayman Islands – a journeywhich started more than 20 years ago when

the Dart family took a vacation.

The Darts were initially drawn to GrandCayman’s marine environment and beaches.Once here, they discovered the island was somuch more. It had a sophisticated infrastructurethat supported the island’s position as a leadingoffshore financial center and a stable businessplatform from which other industries operated.This, together with the existence of a diverse andtalented workforce, strengthened their growingbelief that they could live in, and operate theirbusinesses from, Cayman, leading them even-tually to purchase a home, open a business, andto call Grand Cayman home.

This conversation with members of DartRealty’s Board of Directors – JimLammers, Managing Director, MarkVanDevelde, Chief Executive Officer, andJackie Doak, Chief Operating Officer –provides a unique insight in to the busi-ness, the business philosophies they liveby, and the recently executed NationalRoads Authority (NRA) Agreement.

Why does Dart Realty continue toinvest in Cayman when many companiesare on hold or have completely withdrawn?

Jackie Doak: Dart Realty is com-mitted to contributing to the successof the Cayman Islands and the com-pany’s capital base enables us to havea long-term view on our investmentsand developments. This strong cap-ital base also allows us to endure theunpredictable global economy andthe challenges of delivering multiplelarge-scale development projectsaligned with our vision of sustainable

development, thoughtful design, and communi-ty-centered living.

What is the ForCayman Investment Alliance?

Jim Lammers: The ForCayman InvestmentAlliance is a partnership between the CaymanIslands Government and Dart Realty and rep-resents a tangible demonstration of Dart Realty’s

desire to contribute tothe economic turn-around of the CaymanIslands. In December2010, Dart approachedGovernment to discussdevelopment incen-tives and a proposal tosite a modern wastemanagement facility,both capable of accel-erating the release ofhundreds of millionsof dollars and creatinga short-term boost tothe local economy aswell as solutions tonational issues. Over the next six

months, in the faceof severe fiscal con-straints and a seriesof urgent nationalneeds, Governmentand Dart expandedthe discussions andanalyzed where thetwo parties couldwork together toaddress importantnational challenges.

This resulted in the ForCaymanInvestment Alliance, a multi-facetedinvestment alliance structured to spandecades, which we feel represents aninnovative approach to addressingimportant island infrastructural andeconomic development needs, needs that canperhaps best, and in some cases only, beaddressed by a public-private partnership.

How does the recently signed NationalRoads Authority agreement tie in to theForCayman Investment Alliance?

Jackie Doak: The spirit and intent of thealliance is to get people back to work, achievefunding for necessary infrastructure and com-munity-based projects, and incentivize DartRealty to continue its investment and develop-ment in the Cayman Islands. The NRAAgreement is the first agreement executed underthe ForCayman umbrella, the signing of whichinitiated the construction of the EsterleyTibbetts Highway (ETH) extension to

Batabano Road in West Bay. It also facilitatesthe closure of a section of West Bay Road, pro-viding design flexibility for the redevelopmentof the former Courtyard by Marriott. Thisallows a seamless interaction between the hotel,pool, and beach areas, giving guests and resi-dents easy and safe access to the beach andbeachside amenities which is critical to the suc-cess of the hotel. On signing, we providedfunding of US$5 million to be used byGovernment for educational, community andtraining programs, parks and housing initiativesas well as a “Save the Mortgage” program.

Dart is funding $35 million in road infra-structure and US$5 million for communi-ty, educational, and mortgage arrears pro-grams. How is Dart being paid back?

C A Y M A N R I S I N G

104

Jim Lammers

Employee of Dart Realty handing out seedlings at aGrowing Communities – Dart Family Fun Day.

A small group of the 30-strong workforce working on clearing land in preparation for the northward extension of the Esterley Tibbetts Highway.

Dart Realty

Growing CommunitiesThrough Public Private PartnershipsForCayman Investment Alliance

Jackie Doak

C A Y M A N R I S I N G

Jackie Doak: This is not a loan arrangementwith Government. Instead, in exchange for theUS$40 million in funding, Government nego-tiated that we could recover up to US$24 mil-lion through development related fee conces-sions and abatements. This is important as itcreates the on-going incentive for us to contin-ue developing in Cayman. If we don’t, we willrecover nothing. To put this into perspective, forus to recover through development, we need toinvest and develop in the Cayman Islands inexcess of US$350 million.

Can you expand on the independent reviewprovisions in the NRA Agreement?

Mark VanDevelde: Thepurpose of the independentreview is to provideGovernment with an analy-sis of the objectives, goals,and components of theNRA Agreement and deter-mine whether it providesvalue to the Governmentand the people of theCayman Islands. The inde-

pendent review provisions provide for a three-month review period that allows Government toconsider the results of the independent review,suggest amendments, or terminate the NRAAgreement. Dart fully endorses the independentreview and complies with all Cayman Islandslaws, legal requirements, and procedures; and, inthe meantime, while the independent review isunder way, works have started on the ETHextension under the regulatory supervision of theNational Roads Authority.

Jackie Doak: In a perfect world, the independ-ent review would have been conducted prior toexecuting the NRA Agreement, but given theurgent need to get projects under way and peo-ple back to work, the decision was made to signthe NRA Agreement with the condition that theroad closure would not legally occur until thefindings of an independent review were receivedand accepted by the Government.

Can you provide some insight in to DartEnterprises – the company that is so obvi-ously committed to the Cayman Islands?

Mark VanDevelde: The portfolio of companiesthat make up Dart Enterprises Ltd. has grownover the past decade and make a substantialcontribution to the Caymanian economy. Withits infrastructure and real estate development,commerce and diversified investments, conser-vative estimates calculate the total injection inthe local economy to be more than three quar-ters of a billion dollars since its inception.Directly, or through subsidiary companies,Dart Enterprises locally employs more than 520people and through its vendors, subcontractors,

and business partners, contributes to theemployment of several hundred more. In 2011,while most companies were keeping their headcounts flat or laying off staff, the Dart grouphired nearly a hundred people, more than 60percent of whom were Caymanian. Lookingahead in 2012 and beyond, the Dart groupexpects the redevelopment of the hotel to cre-ate more than 350 new jobs during the con-struction phase alone, most of which will comethrough the subcontractors and vendors hiredon the project.

Jim Lammers: The Dart group has providedwork and strategic partnerships to Caymanianentrepreneurs and established business ownersacross a range of local businesses. In the spirit ofcreating opportunities for local residents and cre-ating employment, Dart encourages its businesspartners to hire Caymanians and will be moni-toring the number of Caymanians employed bysubcontracted firms engaged on ForCaymanrelated projects. ForCayman has support fromthe business community, with a group of morethan 30 local businesses and business leadersproactively advertising in the paper to enthusi-astically urge the Government to expedite agree-ments and get the projects started.

Some Caymanian business owners confirmthis in their own words . . .

“Hydes and Sons has worked with the DartGroup of Companies for many years and enjoysan excellent working relationship. We will con-tinue to support the Dart Group in their plansfor future developments. I also believe theForCayman Investment Alliance will benefit thepeople of the Cayman Islands.”

—Ray Hydes, Hydes & Sons Ltd.

“I support the ForCayman Investment Allianceand believe it will benefit Caymanians consid-ering the difficulties happening in the world

today. We are truly blessed to be working witha company like Dart.”

—Bob Watler, Watlers Metal Products

“As a Caymanian and an employer, I have neverseen it this bad in terms of the volume of peo-ple looking for work. Time is of the essence;work is needed immediately and the numerousjobs created by the ForCayman InvestmentAlliance project will provide overwhelmingrelief to many people.”

—Dean Scott, Island Builders

Mark VanDevelde concludes: The ForCaymanInvestment Alliance builds on what our com-pany has been doing for the past decade inCayman: investing in the country, investing inthe development and growth of our employees,and investing in the communities of theCayman Islands through our community parksand philanthropic giving. We are proud to part-ner with the Government and to be part of theeconomic rejuvenation, which will providemeaningful employment, much needed nation-al infrastructure, and community programs forthis country that we all call home.

DART REALTY (CAYMAN) LTD.

(345) 640-3500Dartrealtycayman.com

Forcayman.com

Mark VanDevelde

Dart Realty is committed to

contributing to the success of the

Cayman Islands and the company’s

capital base enables us to have a

long-term view on our investments

and developments.

Groundbreaking ceremony of the Esterley Tibbetts Highway Extension

105

Those seeking the solace, sophisticationand simplicity of beachfront living havea brand new address to explore: The

WaterColours.

Designed for seamless luxury living, indoors andout, this upscale residential development has anenviable address on Grand Cayman’s worldfamous Seven Mile Beach and features an out-standing collection of amenities that is secondto none. It’s what makes this oasis of island liv-ing truly exceptional.

These exclusive condominiums offer all of thesophisticated services, indulgences and personaltouches associated with the mostglamorous five-star resorts —spanning from valet parking andconcierge services to a beach-front conservatory completewith a chef ’s kitchen.

The WaterColours features 60private residences with spaciousthree- and four-bedroom floorplans, starting at 3,605 squarefeet, along with its select“Grand Residences” starting at7,241 square feet. All residencesin the nine-storey luxury devel-opment face the water forunparalleled oceanfront views.

Constructed to the highestspecifications and safety stan-dards, each residence featuresopen-concept floor plans withsuperior living spaces that cel-ebrate style, form and func-tion.

EXCEEDING EXPECTATIONSThis residential retreat is the masterpiece of thedevelopment group whose list of luxury condo-minium projects includes Water’s Edge, a pres-tigious development on Seven Mile Beach thatwas shortlisted for the esteemed 2010Governor’s Award for Design and ArchitecturalExcellence in the Cayman Islands.

The development group is known to exceedexpectations with each project it undertakes,consistently taking into consideration innovativeand flexible design and environmentally friend-

ly elements while raising the standards of con-struction and building safety — and luxury liv-ing — on Seven Mile Beach.

The WaterColours is no exception – it will beunlike any other luxury condominium projecton the beach. Its noted architectural teamincludes John Redmond of John Redmond &Associates and Michael Meghoo, principalarchitect and co-founder of MJM Design Studiowith his wife Joelle.

The developer is Fraser Wellon, whose projectsare well known in Cayman and throughout theCaribbean for their exclusivity, attention to

detail and superior quality. In December of2011, the Cayman Islands Real Estate BrokersAssociation and the Multiple Listing Systempresented an award to recognize his outstandingcontribution to the real estate industry andongoing commitment to developing projects tothe highest standards.

The development team has partnered exclusive-ly with International Design Group (IDG),Cayman’s leading interior design team and pur-veyors of fine furnishings, for The WaterColours.On board since the conceptual stages, IDG willfocus on creating unique, uniform and modern

concepts for the beachfront owners’ conservato-ry, outdoor living areas, boardroom, managerand security offices and owners’ guest suites. Theteam also provides turnkey and custom furnish-ing packages for the owners’ personal residences.

GRAND STYLEFor the ultimate in luxury living, step into theGrand Residences at The WaterColours. Thesethree one-of-a-kind double units include morethan 7,241 square feet and feature an open-concept design with a 70-foot expanse of unin-terrupted living space, ideal for family livingand gracious entertaining.

“The Grand Residences offerthe opportunity to achievespatial arrangements expectedin a primary residence but noteasily found in beachfront res-idences,” notes architectMichael Meghoo. “The grandfoyer provides gallery space fordisplaying art and collectables,and the view from the foyergallery is continuous with vis-tas across the sea and into thehorizon. The transitionbetween the foyer gallery andliving areas is fitted with a full-fledged theater and wine cellar.The oceanfront living, diningand lounge spaces provideunparalleled views throughexpansive sliding glass doors.”

These spaces are serviced bystate-of-the-art main kitchens,which also have ocean views andfeature a built-in informal din-

ing area. In addition to the main kitchen, theseresidences are equipped with separate enclosedchef ’s kitchens.

The Grand Residences offer six bedroom suites,with en-suites and generous walk-in closets. Themaster suite is positioned with prime viewsalong the oceanfront terrace, with the master en-suite providing every amenity one could require.

ENDLESS AMENITIESIndeed, amenities at The WaterColours willsurpass anything that has come before on SevenMile Beach.

C A Y M A N R I S I N G

The WaterColours

Unparalleled Beachfront Living

D E S I G N E X C E L L E N C EEach residence features open-concept floor plans

with superior living spaces

that celebrate style, form and function.

106

“One of the main features that will set us apartfrom all other developments on Seven MileBeach is our exceptional level of service on theproperty,” notes Steve Henderson, part of thedevelopment group. “As expected from this levelof luxury living, The WaterColours will have afull-time on-site concierge to manage all resi-dent expectations with daily personalizedservice.”

Residents have access to 20,000-square feet ofcommon-area amenities, including a beautifullyappointed pool deck, an elegant owners’ conser-vatory complete with a professional chef ’skitchen, wine cave, a fully equipped boardroom,and sunset bar service.

And the amenities continue. The WaterColourswill offer private under building parking andstorage with valet attendant, a small fleet of lux-ury vehicles for the private use of the residentsand their guests, an airport pick-up and drop-off service, and 24-hour security. Four on-siteguest suites can accommodate guests or staff.

There will be a well-equipped fitness studioand a private massage room for relaxation orphysiotherapy.

The sea-facing infinity pool is sure to be one of

the most talked about on Seven Mile Beach.With more than 200 feet of vanishing edge, theexpansive pool will complement the transition-al design of the building’s interior and exterior,complete with side flanking fountains and awhirlpool rising from the pool’s surface as a col-umn of continuous flowing water.

As the completion of Grand Cayman’s newestluxury residence draws nearer, the opening ofThe WaterColours will be a highly anticipatedevent – especially for those fortunate enoughcall one of these extraordinary luxury resi-dences home.

THE WATERCOLOURS

RE/MAX Cayman IslandsKim Lund (345) 949-9772

kim.lund@remax.kyJames Bovell (345) 945-1585

James.bovell@remax.kywww.TheWaterColoursCayman.com

• State-of-the-art fitness studio• Beachside infinity pool• Private massage room• Beachfront owners’ conservatory

with wine storage and full chef’s kitchen

• Concierge services

• Boardroom• Owners’ guest suites• Private under building

parking and storage• Valet parking• On-site luxury car service• 24-hour security

O U R A M E N I T Y C O L L E C T I O N

Well-Appointed Beachfront Owners’ Conservatory

The Grand Entryway to The WaterColours

Owners’ Guest Suite

State-of-the-Art Fitness Studio

SCAN. EXPLORE.

C A Y M A N R I S I N G

107

CONSTRUCTION IN PROGRESS ON CAYMAN'S FIRST NINE-STOREY CONDO

60 private luxury residences with spacious three-, four- and six-bedroom floor plans constructed to the highest specificationsPriced from $2.95 Million USD • The most exclusive residences on Grand Cayman's Seven Mile Beach

• State-of-the-Art Fitness Studio• Beachside Infinity Pool• Private Massage Room • 24-Hour Security• Beachfront Owners' Conservatory

with Wine Storage and Chef's Kitchen • Concierge Services • Owners’ Guest Suites and Boardroom• Private Under Building Parking and Storage• Valet Parking and On-Site Luxury Car Service

A PARADISE THAT ENCOMPASSES THE ULT IMATE L IFESTYLE RETREAT

www.TheWaterColoursCayman.com

James Bovell(345) 945-1585james.bovell@remax.kywww.dreamfinders.com

Kim Lund(345) 949-9772kim.lund@remax.ky

www.caymanlundteam.comEach office independently owned and operated.

RE/MAX Cayman Islands, 7 Mile Shops, Grand Cayman.

CIREBA Member. MLS # 102832-845,102847-874

SCAN . EXPLORE.

Come. Make your escape.

I D G S H O W R O O M – 7 M i l e S h o p s – 2 1 5 W e s t B a y R o a d3 4 5 - 9 4 3 - 6 4 6 4 – w w w . i d g c a y m a n . c o m

D E S I G N – F U R N I T U R E – A C C E S S O R I E S

Turn-Key Packages - Spatial Planning - Consultations - Integrated Design Solutions

The Cayman Islands is theworld’s leading jurisdic-tion for the registration

of hedge funds – approximately10,000 funds are domiciled here– and Ernst & Young, bothglobally and locally, is a recog-nized market leader in providingprofessional services to the fundsector.

For more than 25 years, Ernst &Young has been the preferredservice provider for hedge funds.The Ernst & Young hedge fundpractice is led by highly skilledprofessionals including morethan 200 partners, principals andexecutive directors and 2,000industry-focused professionals.Teams are located in key financialcenters throughout the world toserve clients where they need service, providingfirsthand insight on local market trends andaccounting, tax, and regulatory issues.

The numbers, as accountants might say, tell thestory. Internationally, Ernst & Young:

• Audits approximately 40 percent and providestax services to approximately 50 percent of thetop 100 Global Billion Dollar Club hedgefunds

• Audits approximately 40 percent and providestax services to approximately 50 percent of thetop U.S. hedge funds

• Audits 40 percent of the top 50 Europeanhedge funds

• Audits more than 50 percent of the top 25Asian hedge funds

• Audits almost 40 percent of the top 50 glob-al fund of funds

As part of Ernst & Young’s commitment to thehedge fund sector, the firm conducts a series ofsymposia in 20 locales throughout the world,including the Cayman Islands. This year markedthe third Cayman event at the Ritz-Carlton GrandCayman. Ernst & Young Ltd., Cayman PartnerJeffery Short moderated the event. His Excellency

the Governor, Mr. Duncan Taylor, who wasintroduced by Ernst & Young Ltd. RegionalManaging Partner Dan Scott, welcomed themore than 200 local and offshore hedge fundpractitioners and service providers in attendanceand underscored the importance of the industryto the Cayman financial community.

In a panel led by Flavio Peppe, ManagingPartner, Ernst & Young Terco, Brazil, Maplesattorney Simon Firth pointed to the burgeon-ing Brazil economy as a “significant opportuni-ty for Cayman service providers that is current-ly being missed.” He urged local serviceproviders to forge relationships with their coun-terparts and asset managers in Brazil. “If wedevelop these relationships,” he said, “we will

have their business forever; if wedon’t, we will lose it.”

Showcased at the symposium wasthe recently released Ernst & YoungGlobal hedge fund survey 2011.The survey, now in its fifth year, iswidely regarded as a bellwether ofindustry trends and investor senti-ment. Mike Mannisto, Partner,Ernst & Young Ltd., Cayman andTiffany Norris-Pilcher, Partner,Ernst & Young Ltd., Bahamas, leda discussion on the survey. Amongthe survey highlights:

• Succession is relatively under-developed as a concept amonghedge fund managers whileinvestors are increasingly seeingit as important. Key man risk,the foreword to the survey

concludes, “is likely to be an increasing featurein determining where investors place theirmoney. Investors appear to be ahead of manymanagers in trying to think this through, andit is becoming clear that cogent and cohesivesuccession plans – for both the business and forportfolio managers – will become a determin-ing factor in their decisions.”

• Due diligence processes have lengthened andinvestor monitoring has become moreintense: “Investors have become more con-cerned with operational due diligence andinternal controls. Capital is flowing to fundsthat may at times have mediocre perform-ance, but have robust infrastructure, strongmanagement teams and reputable outsideadministrators.”

• In a foreword to the survey, written by ArthurF. Tully, Co-Leader, Ernst & Young’s GlobalHedge Fund Practice (and who spoke at thesymposium) and Ratan Engineer, Global AssetManagement Leader, the authors conclude:

“Considerable uncertainties haunt the marketsand if the current turmoil spills over into a cri-sis, 2008 may well pale into insignificance.Hedge funds, or at least the best of them,should turn this to an advantage, and someare already doing so. So despite the gatheringstorm in the markets, and despite the best

C A Y M A N R I S I N G

Ernst & Young

Leading the Hedge Fund Sector

110

The Cayman Islands is the world’s

leading jurisdiction for the

registration of hedge funds –

approximately 10,000 funds

are domiciled here –

and Ernst & Young Ltd.

is a recognized market leader in

providing professional services

to the fund sector.

Ernst & Young Regional Managing Partner Dan Scott opens the GlobalHedge Fund Symposium at The Ritz-Carlton, Grand Cayman.

efforts of some misguided regulators, man-agers will determinedly survive. They alert usin this survey to trends such as the consolida-tion in the industry, greater institutionaliza-tion and greater transparency continuing andbeing reinforced . . . The industry may wellbe coming of age, and let us hope we can lookback at these dark days and sincerely say thatthis was its finest hour.”

Rohan Small, Partner, Ernst & Young Ltd.,Cayman, moderated a panel on “Hot Topics inthe Industry,” which included Michael Serota,Co-Leader, Ernst & Young’s Global HedgeFund Practice, Jim Kickham, Senior Manager,Ernst & Young LLP, New York, and ClaireLoebell, Senior Manager, Ernst & Young Ltd.,Cayman.

Mr. Serota cited a “watch-and wait” investorenvironment in the lead up to the U.S. presi-dential elections.

He noted that there were 11 tax revenue meas-ures currently under consideration inWashington, including the expiration of theBush tax cuts and, importantly, a tax on finan-cial transactions.

Mr. Kickham identified as a “hot topic” thechallenge of financial institutions to complywith the Foreign Account Tax Compliance Act,better known as FATCA.

Mr. Kickham suggested that Ernst & Youngcould assist clients on FATCA issues by guidingthem through a three-stage process: 1)Assessment of their current situation, includingan evaluation of the quality of data, systems, andprocesses, 2) Implementation, including any

changes which need to be made to update dataand processes, and 3) Compliance, whichincludes the actual collection and validation ofthe data, and, ultimately filing with the IRS.

Mr. Kickham cautioned that, despite the regu-latory uncertainty and, in many cases, institu-tional disarray regarding FATCA, “It’s unlikelyto go away.”

The “Keynote Address” was actually a wide-ranging fireside chat between Arthur Tully andTodd Groome, Chairman of the AlternativeInvestment Management Association (AIMA).

Mr. Tully observed that the hedge fund indus-try was in the midst of “a profound transfor-mation,” with investor demand for increasedtransparency, reduced fees, and better gover-nance dovetailing with regulators’ demands for

more data, stricter limits on risk-taking, andbetter operational infrastructure.

Mr. Groome concurred, adding that a pro-nounced change in the hedge fund industry wasa shift toward institutionalization. “Institutionalinvestors are here to stay and will have anincreasingly large influence in the structure andstrategy of funds,” he said. Institutionalinvestors, such as pension funds, are looking tohedge funds to outperform volatile markets overthe business cycle and preserve capital in downmarkets. He said the fund industry was respond-ing to the needs of institutional investors by pro-viding increased transparency, better reporting,and greater control of the assets.

ERNST & YOUNG LTD.

62 Forum Lane, Camana BayTel: (345) 949-8444

www.ey.com/cayman

C A Y M A N R I S I N G

111

As part of Ernst & Young’s

commitment to the hedge fund sector,

the firm conducts a series of symposia

in 20 locales throughout the world,

including the Cayman Islands.

Rohan Small (left) leads a panel with Michael Serota, Jim Kickham,and Claire Loebell.

Governor Duncan Taylor welcomes guests to the Ernst & Young Ltd., Cayman Hedge Fund Symposium.

Arthur Tully and Todd Groome deliver a joint keynote discussion on the evolution of the hedge fund sector.

EXCEPTIONAL FEATURES AT CRYSTAL COVE• Private backyard dock with boat slip

• Rooftop terrace with infinity pool and hot tub

• Floor-to-ceiling windows for spectacular panoramic views

• Italian-style open kitchen with high-end European appliances

• Shaded terrace cabana for dining and entertaining

• Flexible three- or four-bedroom floor plan; optional elevator

• Only six villas in Phase One of this exclusive development

• Individually owned lots — no strata

• Idyllic location overlooking the North Sound

O F F E R I N G S I X P R I V A T E F A M I L Y H O M E S I N C R Y S T A L H A R B O U R

C O N T E M P O R A R Y L I V I N G R E D E F I N E D

Visit Our Offices at Caymanian Village #5North Sound WayGrand CaymanSales Office Tel: 345.949.4979Email: info@davenportdevelopmentltd.com

C I R E B A A G E N TTel: 345.949.5250345.945.1313www.crightonproperties.com

A year of celebration!

From Top Left: Adolfo Alba, Angi Arscott, Basia Harris,

Bianca Hurlstone, Heather Carrigan, Stacie Hood,

Karina McDermot, Patty Nugent, Sheena Conolly, and Jonathan Sparrow

It’s a banner year for Sheena Conolly, and the select team at CaymanIslands Sotheby’s International Realty.

The owner/broker is celebrating two milestones: 10 years since open-ing her own real estate venture in Cayman, and five years since landingthe prestigious Sotheby’s International Realty (SIR) global brand.

“It’s a double anniversary for me,” says Conolly. “I am looking forwardto an exciting time ahead. We really have some dynamic new programsthat will put our company, and the Cayman Islands, in the global spotlight.”

Conolly and her team are already making inroads with innovative mar-keting programs and a referral system that links to a network of over11,000 sales associates in more than 500 offices worldwide.

The SIR brand has been experiencing tremendous growth in recentyears, with the Cayman Islands affiliate enjoying a heightened profile fromits strong market positioning.

“Sotheby’s reach, clientele, and initiatives are revolutionary,” saysConolly. “This is a company with a global referral system and network thatis truly like no other.”

It’s what makes it such a good fit with Conolly’s own vision and phi-losophy in the real estate realm. She started her realty career as an inde-pendent contractor, building an enviable profile through stylish, bold, andsavvy marketing that quickly made her a household name. After eightyears, she decided to strike out on her own, establishing Sheena ConollyReal Estate.

“My goal was to design a realty company with a difference,” she says.“I wanted to set up a service driven, welcoming boutique-style firm, andbuild a team of people who could work harmoniously together to ensurethe highest level of care and client service.”

Conolly started out by setting up two small cottage real estate officesin Grand Cayman, later amalgamating to a larger space in West ShoreCenter. After earning the prestigious Sotheby’s International Realty brand— which only grants affiliations to brokerages and individuals meetingstrict qualifications — Conolly opened a gallery premises in the moreupscale Governors Square on the world famous Seven Mile Beach strip.

Remaining true to stringent brand standards while preserving localcompany and agent individuality, Cayman Islands Sotheby’s InternationalRealty has more than doubled in size to now include an experienced teamof eleven highly regarded experts in luxury real estate. Several have beenwith Conolly for years — some from the very start. It speaks volumesfor her leadership style, loyalty, and expectations.

“The benchmark I set for myself is a very high one — and also forthose who work with me,” she says. “I’ve always been passionate abouteverything I’ve embarked upon. And I am competitive by nature – it runsin my genes.”

That stems from her background growing up in her native N. Ireland,where she learned the ropes working in sales and marketing for herfather’s sports company. In school, she vigorously pursued everything fromsports to music to car racing. She studied at Cornell University, andworked at a high-end destination resort in the Caribbean where she even-tually met her future husband, architect Burns Conolly. When she movedto Cayman, Conolly made a career change from the hospitality industryto real estate.

Conolly says it’s been a demanding but rewarding career, with vastopportunities in the field. Sotheby’s now offers their exceptional clienteleboutique service for Wines, Diamonds and International Realty alongsidethe heritage auction house, founded over 250 years ago. The Caymanoffice is now positioned for growth, innovation, and inspiration into 2012and beyond.

“I feel so fortunate they approached me,” says Conolly. “What a priv-ilege and a great opportunity. Cayman is well known as a financial centerbut is not always at the top of mind for those seeking a great place toreside, develop, or have a second/holiday home. I am determined tospread that positive message, and put the lifestyle of our Islands truly onthe map internationally.”

Cayman was recently in the spotlight when Sheena Conolly appearedin a New Years Day segment of HGTV’s Million Dollar Rooms, showcas-ing a lavish living room in one of Cayman’s most distinctive homes. (Theepisode can be viewed at: www.channel-8-ent.com/milliondollarroc.html)

Sotheby’s International Realty marketing initiatives are also drivingmany new opportunities and brand awareness. Among them: the launchof SothebysRealty Channel on YouTube; social media initiatives and exclu-sive partnerships with such renowned media as The New York Times, BBC,The Times, Wall Street Journal, The Globe & Mail, and South China MorningPost; mobile uploads allowing consumers to view Sotheby’s listings world-wide; and the unveiling of its newly redesigned website featuring a mul-titude of languages, www.sothebysrealty.com.

“It’s been really extraordinary,” says Conolly. “I’m very proud to be partof this distinguished group, and I know that it is going to benefit theCayman Islands tremendously.”

(345) 623-1234 • www.sothebysrealty.comwww.sircaymanislands.comMember CIREBA

Extraordinary Service, Properties & People

It’s the talk of the town! The Apple iPhone4S is now available exclusively throughLIME – taking innovation to the next level.

Another first from LIME, the iPhone 4S willagain change the way people communicate.While it retains the exterior design of its pred-ecessor, the iPhone 4, the new iPhone 4S comesloaded with top-end technology that makes itthe most amazing iPhone yet.

Among the new features: a faster processor,improved camera, high-definition video record-ing, twice the storage, and a smarter virtual assis-tant called Siri, Apple’s voice recognition service.Just like a personal assistant, simply talk to Siri– and it will answer. Siri can send text messagesby voice-command, schedule meetings, setreminders, and make phone calls, among manyother fantastic functions.

FaceTime lets you hear a voice and see the facethat goes with it – iPhone to iPhone, iPad 2, iPodtouch, or Mac over Wi-Fi. Making a FaceTimecall is just as easy as making a phone call. Andit’s even easier with Siri. Just tell Siri “FaceTimewith Mom,” for example, and you show up,smile, and wave hello. You’ll never miss a bigevent, an important meeting, or a good laugh.

Another great feature is cloud-sourced data, abreakthrough set of free services that work withyour iPhone, iPad, iPod Touch, Mac, or PC toautomatically and wirelessly store your contentin iCloud and push it to all your devices. TheLIME 4G/3G mobile network in the CaymanIslands is perfect for the demands of this mas-terful device, with the speed and the ability topush and pull all the data you need. The iPhone4S is available in three models – the 16GB, the32GB and the 64GB.

With certain plans, some customers will get thephone for free. Other plans are available – sim-ply go online at www.lime.com/iphone, or stopin at any LIME location and talk to one of thesales reps.

Customers can upgrade from the iPhone 4 tothe iPhone 4S. Existing LIME iPhone 4 cus-tomers with an iPhone plan may purchase thenew iPhone 4S from LIME and retain theirexisting plan. (Note: In this case, the cost of theiPhone 4S will be the full retail price). You canpass on your iPhone 4 to a friend or familymember, and they may register for the iPhoneprepaid plan or one of the iPhone plans.

C A Y M A N R I S I N G

LIME

The iPhone 4SDebuts in Cayman

The most amazing iPhone yet on the network with 100% 4G coverage nationwide.

Visit lime.com or ask in store for details. LIME. For living. EverydayLIME Terms and Conditions apply.

LIME

(345) 949-7800 • www.lime.com

116

V I S I T O U R O N L I N E P O RT F O L I O

W W W . P I N N A C L E . K Y

T H E S T R A N D • ( 3 4 5 ) 9 4 5 - 6 5 6 6

Award Winning Marketing & Designs

Pinnacle Publishing & Marketing,

publisher of Grand Cayman Magazine,

can help you achieve your company’s marketing goals

by conceiving effective strategies and producing the highest quality materials.

M A G A Z I N E S • B R O C H U R E S • P R E S E N TAT I O N S • A N N U A L R E P O R T S • E V E N T P L A N N I N G • M A R K E T I N G S T R AT E G I E S