- 31,145 funds were domiciled in the Cayman Islands at the end of the second quarter of 2026, up from 30,598 at the end of 2025.
- Private funds reached 18,132, a 43% increase since the end of 2020.
- Twelve tokenised funds are now registered in Cayman, including Fidelity International’s first tokenised fund.
- 56% of emerging hedge fund managers domicile their flagship fund in the Cayman Islands.
Cayman Finance reports a major milestone in fund registrations for the jurisdiction, recording more than 31,000 fund registrations, as published in the second quarter fund statistics by the Cayman Islands Monetary Authority (CIMA). Private and mutual fund registrations are now both at record highs.
The total number of regulated funds domiciled in the Cayman Islands rose by 547 in the first half of 2026 to reach 31,145. The total comprises 18,132 private funds and 13,013 mutual funds, the category under which hedge funds are typically registered. Private fund registrations rose by 410 in the first six months of 2026 and have increased by 43% since the end of 2020.
Growth in private funds continues to track global demand for private equity and private credit. Institutional demand for private credit has remained strong, despite an increase in redemptions from retail investors. Structures have also continued to evolve, particularly through the increased use of continuation vehicles and hybrid approaches that combine 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 US$100 million in assets falling from 56% to 28% since 2024.
Tokenised funds reach double figures
The number of tokenised funds registered with CIMA has risen to 12 since Cayman’s statutory framework for tokenised fund structures came into force in March 2026. Coordinated 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. One of the newest funds includes Fidelity International’s first tokenised fund, Fidelity USD Digital Liquidity Fund, which offers round-the-clock liquidity through blockchain-based issuance and redemption of tokens.
Samantha Widmer, Director and Head of Funds & Capital Markets, Cayman Finance, said: “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,” Widmer added. “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.”
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 US$16 trillion in total assets at the end of 2024, with a net asset value of US$9.2 trillion. 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.