Bangkok, Thailand (May 2025) — The Cayman Islands remained the leading offshore jurisdiction for fund domiciliation, with over 30,000 registered funds in the financial centre as of 2024. Luxembourg came next with almost 20,000 and Ireland with about 10,000 funds registered, according to data from regulatory bodies.

The Cayman Islands’ status as a renowned funds market was the topic of a panel discussion in Bangkok, Thailand, 28 April 2025.

Mr. Gene DaCosta, Asia Representative of Cayman’s Ministry of Financial Services and Commerce, provided a brief history of Cayman’s rise to becoming a leading funds market. “Cayman wasn’t always this bustling offshore centre,” Mr. DaCosta said.

“In order for Cayman to remain a lead in [the] offshore fund space, we have, certainly, over the years, worked diligently […] Cayman remains a leader in the offshore front space by working diligently and continuously with governments, international authorities and world-class industry leaders over the decades to ensure that Cayman is trusted, regulated and [a] very cooperative jurisdiction.”

Speaking as an independent director, SOLAS’s Founder and Managing Director, Mr. Martin O’Regan, who also moderated the discussion, noted the legislative requirements that apply to directors of fund structures. “There is legislation to comply with … whether you’re independent or not, if you’re a manager on that board, you still have to comply with these principles. And you would have to then document how you’re discharging your obligations as a director and an audit trail of why you’re making these decisions as a director.” Mr. O’Regan said this was a ‘welcome change’ in the market because it has set the standards for directors of the Cayman funds.

In the first quarter of 2025 alone, more than 3,500 companies and over a thousand limited partnerships have already been incorporated in the Cayman Islands.

Managing Partner of Wealth Management Alliance, Steve Knabl, observed, “[The] Cayman Islands clearly retained its interest of people wanting to set up funds, especially when it’s cross jurisdictional.” For him, the Cayman Islands offers a very “straightforward” work environment for market participants, making the country an ideal fund domicile.

“In how things work, and how you can operate cross-border very seamlessly, and all of the service providers around it has deep experience, brand owners, fund administrators, so everything is just very, very straightforward,” said Mr. Knabl.

Fund structures in the Cayman Islands

Currently, the two most common fund structures in the Cayman Islands are mutual funds, which, according to Conyers’ Director and Head of Singapore Office, Ms. Preetha Pillai, is the most common structure in the course of her work; this type of fund is useful where it’s a liquid strategy allowing for periodic redemptions in accordance with the fund terms.” The other is the private fund, which is suitable for private equity and venture capital.  

Ms. Pillai further discussed how these funds are set up and shared her insights into the trends in the local fund scene.

On Cayman regulatory framework, Ms. Pillai said: “The beauty of Cayman is it is familiar, and the regulations are transparent, easy to understand, easily complied with.”

Talking about the compliance of the fund, Bolder Group’s Global Head of Funds, Mr. Neco Dusseldorp, explained the importance of ensuring all the checks have been done correctly to launch the fund, whether a Cayman fund or otherwise. 

According to Dusseldorp: “[T]here’s more focus now for investment monitoring, due diligence and making sure that it is a seamless process, because, at the end of the day, the money needs to be put to work, and [that] can only happen if everything is cleared.”

He also said that fund managers must be in good standing and compliant with local laws and regulations. “A big part of this is onboarding the investors, getting the KYC in place … but also making sure investors have a seamless experience when they subscribe to a fund.” Dusseldorp said that the role of fund administrators has now gone beyond accounting and NAV calculation and expanded into helping managers ensure compliance.

Cayman funds: Thai perspective

Mr. Julius Choy, Maybank Securities’ Head of Fixed Income, Structured Products, Mutual Funds, LFX, also joined the panel and shared his observation that many Thai managers are investing in private equities and have a “fairly diversified portfolio” with exposure to various fund markets, including the Hong Kong, American, European, Ukrainian and African markets.

He also added that in the local Thai market, managers would “deploy strategies to diversify away from equities and into fixed income and structured products.”

Thai investors are increasingly gravitating toward Cayman, Delaware, and Luxembourg funds, according to Sujade Simthamnimit, Partner at Baker McKenzie. He notes that Cayman funds are “widely accepted” among Thai investors, citing regulatory considerations and tax advantages compared to other common fund domiciles.

Despite this trend, challenges remain. One key concern is whether Cayman law provides adequate investor protection. “The question often arises whether there is proper protection under Cayman law for the investment in Cayman funds,” Sujade explains. “That’s why we need to set the right understanding about the Cayman fund which in fact has well developed legal framework for investment funds.”

Another issue is Cayman’s reputation as a “tax haven,” which raises concerns for some institutional investors, particularly from a policy standpoint. Addressing these perceptions and clarifying the regulatory framework will be crucial in maintaining investor confidence in Cayman-based funds.

Mr. DaCosta pointed out that the jurisdiction is tax-neutral, but it still imposes indirect taxation. He said Cayman being considered a tax haven is “incorrect.”

More than 70 industry experts from different jurisdictions were present during the discussion, which was followed by a networking session.

The event was co-organised by the following:

• Baker McKenzie
• Bolder Group
• Conyers
• Maybank Securities
• Solas
• The Cayman Islands Ministry of Financial Services and Commerce
• Wealth Management Alliance

Event photos and presentations can be accessed here: Cayman Islands: Key Insights into a Premier Fund Jurisdiction (Event Photos)

Contact:

Gerben Oldekamp (Bolder Group’s Chief Commercial Officer)

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