Figures from the Cayman Islands Monetary Authority (CIMA) cited by Cayman Finance point to the total number of regulated funds in the domicile increasing by 547 to reach 31,145 in the first half of 2026,
The total figure includes some 18,132 private funds and 13,013 mutual funds. Private fund registrations rose 410 in the first half, increasing by some 43% since the end of 2020,
Cayman Finance (CF) points to ongoing institutional demand for private equity and credit driving growth in private funds. There is increasing use of continuation vehicles and hybrid approaches combining “primary commitments, secondary purchases and co-investment rights”.
“Demand for hedge fund structures has also increased. A survey of 180 managers published in July by the Alternative Investment Management Association (AIMA) and Marex found that 56% of emerging hedge fund managers domicile their flagship fund in Cayman, up from 55% in 2024. Cayman and the United States together account for 72% of flagship fund domiciles. The survey also found that new managers are scaling faster, with the proportion taking more than five years to pass $100m in assets falling from 56% to 28% since 2024.”
Tokenised funds
Some 12 tokenised funds have registered with CIMA since March 2026, when the domicile’s statutory framework for tokenised fund structures entered.
CF says that amendments to Cayman’s Mutual Funds Act, the Private Funds Act and the VASP Act “removed the dual-licensing risk that had previously slowed institutional decisions”. Fidelity is among those who have taken advantage to launch a tokenised fund, it added.
CF continued: “Cayman is the world’s largest tax-neutral fund domicile, with more than twice as many funds as Luxembourg, its nearest competitor. Cayman funds managed $16trn in total assets at the end of 2024, with a net asset value of $9.2trn. Data from the US Securities and Exchange Commission shows the jurisdiction accounts for approximately 31% of all US private fund assets and 54% of US hedge fund assets.”
Samantha Widmer (pictured), director and head of Funds & Capital Markets, Cayman Finance, commented: “Cayman added 547 new funds in the first half of the year, comfortably ahead of the 448 recorded in the whole of 2025. The growth comes from institutional investors increasing their private market allocations, greater demand for continuation vehicles and a steady flow of new hedge fund launches. Tokenisation is the newest fund trend and Cayman is well positioned to support these requests. Twelve tokenised funds are now registered with CIMA, and Fidelity’s decision to domicile its first tokenised fund here shows the legislative reforms are working as intended.”
“It is encouraging that emerging managers keep choosing Cayman for their hedge funds. The AIMA survey puts our share of flagship fund domiciles at 56%, and those managers are reaching scale faster than they were two years ago. Their success matters for the long-term health of the sector.”
