The Cayman Islands are the world’s leading offshore centre for the establishment of hedge funds and private equity funds.
There are over 13,000 mutual funds licensed, registered or administered with the Cayman Islands Monetary Authority (CIMA). Following the enactment of the Private Funds Act in 2020, there are over 17,600 private funds registered with CIMA. Most investment funds are aimed at institutional or sophisticated/high-net-worth investors, which is reflected in the types of funds that are regulated in the jurisdiction and their assets under management.
The Cayman Islands continues to be the unrivalled market leader for offshore alternative investment funds. With nearly 13,000 mutual funds (open-ended or ‘hedge’ funds) and more than 17,000 private funds (closed-ended funds) registered with the Cayman Islands Monetary Authority, Cayman remains the jurisdiction of choice for institutional and high-net-worth investors.
The vast majority of Cayman funds are products that are geared toward sophisticated and institutional investors, and the regulatory framework reflects that reality—streamlined, commercially sensible, and backed by a deep bench of legal, accounting and fiduciary talent.
Every Cayman fund must maintain a registered office through a licensed corporate services provider in Cayman, which handles key records and governance support. Beyond that, funds typically engage a combination of local and international service providers. That includes Cayman-based legal counsel, CIMA-approved auditors, professional directors (for corporate funds and general partners), anti-money laundering (AML) officers and trustees, and both international and domestic fund administrators.
While many asset managers continue to operate from traditional financial centres like New York or London, despite a drop in registrations after 2019 when Cayman registered fund managers were required to maintain some form of physical (aka ‘economic’) substance in the Islands (down from 2,198 to 1,400 today), in recent years there has been a growing interest from firms who want to establish a physical presence in Cayman. Initiatives such as those led by Cayman Enterprise City, which provide a streamlined route to physical presence on the island, have been part of this interest.
Cayman’s success story is not accidental. It’s a combination of factors: a strong legal system (anchored by final appeal to the Judicial Committee of the UK Privy Council), a tax-neutral platform that avoids leakage or complexity, and a deep pool of professional talent that knows how to work at institutional speed.
Funds are free to pursue their strategies without burdensome local restrictions, and they can count on predictable, world-class support infrastructure. That’s why Cayman is the default for serious asset managers looking to form their offshore component.
As of June 2025, CIMA statistics record 13,090 regulated mutual funds, comprising 9,003 Registered Funds, 253 Administered Funds, 44 Licensed Funds and 3,180 Master Funds. CIMA records also indicate that there were 17,609 regulated private funds.
Independent Directorskeyboard_arrow_right
The Cayman Islands is the leading offshore domicile for hedge funds, and as regulators and investors have placed more stringent requirements on good governance and oversight, so independent directors have taken up the mantel of supporting the asset management industry. The majority of all new hedge funds have at least a majority of independent directors on their boards.
Fund Administrationkeyboard_arrow_right
The Cayman Islands remains the premier jurisdiction for the domiciliation of hedge funds. As of June 2024, CIMA records indicate that there are 12,893 regulated mutual funds, comprising 8,769 Registered Funds, 267 Administered Funds, 48 Licensed Funds and 3,182 Master Funds. CIMA records also indicate that there were 17,020 regulated private funds.
In addition there are 74 Administrators currently licenced in the Cayman Islands. CIMA lists all registered fund administrators in the Cayman Islands including Carne, Conyers, Estera, International Management Services (IMS), Loeb Smith, Maples, MUFG, Ogier and Walkers.
