The Grand Court of the Cayman Islands, Financial Services Division, recently ruled that a side letter between a Cayman hedge fund and beneficial owner of certain fund shares was enforceable, even though the side letter was not signed by the registered shareholder.  See “Can an Investor Who Invests Through a Nominee Shareholder in a Cayman Islands Hedge Fund Rely on a Side Letter To Which Its Nominee Is Not a Party?,” Hedge Fund Law Report, Vol. 6, No. 39 (Oct. 11, 2013).  This article summarizes the background of the dispute, the circumstances surrounding the side letter and the reasoning underpinning the Court’s decision.  For more on structuring and negotiating side letters, see “Proskauer Partner Christopher Wells Discusses Challenges and Concerns in Negotiating and Administering Side Letters,” Hedge Fund Law Report, Vol. 6, No. 5 (Feb. 1, 2013).