Cayman private funds numbers continue to grow

The latest data from the Cayman Islands Monetary Authority reveals that Cayman continues to attract international funds.

There were 17,722 private funds registered in Cayman in 2025, up by 430 from 17,392 the year before. That’s an increase of less than 2%, but the growth since 2020, when there were just 12,695 private funds domiciled in the jurisdiction, is a more notable 40%.

The increase in private funds has been driven by a global demand for private credit. When banks moved away from lending to mid-sized corporations following the Global Financial Crisis in 2008, private credit managers stepped in.

Private equity is another important component of the growth in Cayman’s private funds. Again, this is linked to global trends, with low interest rates favouring leveraged buyouts while demographic shifts have increased pension funds’ ability to back long-term private equity strategies.

But Cayman’s financial centre doesn’t just rest on private funds. According to the authority’s recently published 2025 Fund Statistics, the jurisdiction has 12,876 mutual funds – a number that also includes hedge funds – bringing the total figure to 30,598 funds in total.

Hedge funds and digital assets

Hedge fund analysts and research group HFR estimates the size of the global hedge fund industry increased by about US$628 billion in 2025 to exceed US$5 trillion. Cayman Finance estimates the jurisdiction is home to more than 75% of the world’s offshore hedge funds, with 54% of all net assets reported to the SEC being managed in Cayman-domiciled funds.

The common theme behind these growing fund numbers is that they are being driven by factors beyond Cayman’s shores. But Samantha Widmer, director and head of funds and capital markets at Cayman Finance, believes the jurisdiction is well-placed to thrive with whatever comes next.

“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.”

In addition to increasingly complex new structures, there are also lots of traditional reasons why asset managers like using Caymanian fund structures. “Cayman combines tax neutrality and English common law certainty with a robust, commercially practical regulatory framework,” said Widmer.