The Cayman Islands is enjoying a surge in fund registrations thanks to the growing demand for private funds.
Statistics published by the Cayman Islands Monetary Authority showed that the number of private funds domiciled in the Caymans has risen by 40% in the last five years.
By the end of 2025, there were 17,722 registered funds, compared to 12,695 at the end of 2020.
This was the year that the Private Funds Act was introduced, mandating that funds be registered, annually audited and have formalised oversight mechanisms for valuation and custody.
The growth of Cayman’s funds sector has coincided with the increased demand for private credit fundraising.
The jurisdiction is now home to 30,598 funds, including 12,876 mutual funds, many of which are hedge funds. These funds managed around $16 trillion as of the end of 2024, making it one of the most asset-rich offshore domiciles.
“Since the introduction of the Private Funds Act, the jurisdiction has strengthened institutional confidence through consistent oversight, while still delivering speed to market through streamlined processes,” said Samantha Widmer, director and head of funds & capital markets, Cayman Finance.
“As private credit, continuation vehicles and hedge fund strategies continue to evolve, Cayman’s flexibility and global credibility position it to support the next phase of investment growth,” said Widmer.
“Virtual asset strategies and tokenised funds present new structural opportunities, with Cayman already hosting approximately 58% of crypto and digital asset hedge funds globally.”
