Fund Jurisdiction Guide: Cayman Islands

Why so many fund managers choose Cayman, the most popular fund structures, and considerations when setting up a Cayman-based fund.The Cayman Islands are home to more than 29,000 funds. 70% of the global hedge fund market is made up of Cayman-based funds, and 80% of all new offshore funds are registered in Cayman, with 67% of Cayman funds having US investment managers. The AUM of funds on the island has been estimated at almost $2 trillion.

With so many funds calling Cayman home, one can’t help but wonder why. After all, there are other tax-neutral jurisdictions – Luxembourg, Ireland, Jersey, Guernsey, the British Virgin Islands – and yet Cayman has more than double the number of funds of all those jurisdictions combined. There must be something to it; but how can you know if Cayman is the right place for your fund, or how to take advantage of the unique aspects of this jurisdiction?

The goal of this guide is to help fund managers understand the benefits of Cayman and the opportunities it provides as a fund domicile. We’ll discuss Cayman’s role in the global alternative asset management space and identify key considerations when setting up a Cayman-domiciled fund. We’ll also discuss how the right administrative solutions can set your Cayman fund up for success, no matter where you call home.