Private Capital Boom Drives 36% Increase In Cayman Partnerships: $16 Trillion In Fund AUM

(MENAFN- ValueWalk) >Cayman Finance reports record corporate activity in 2025 to support the funds and investment industry. The number of active companies and partnerships in Cayman climbed to a new high, reflecting growth in traditional fund structures, and rising demand for vehicles designed for capital market access, insurance, digital assets and private wealth planning.

Active partnerships on the Cayman Islands General Registry rose by 36% between 2020 and 2025, closely tracking the expansion in private markets and fund formation activity. Partnerships increased from 31,733 in 2020 to 43,056 in 2025. The rise in partnerships reflects the expansion of private equity, private credit, and venture capital. Exempted limited partnerships (ELPs), the dominant structure for private investment funds, remain central to the pooling of institutional capital globally.

Cayman partnerships increased from 31,733 in 2020 to 43,056 in 2025 Exempted limited partnerships are typically used in private investment fund structuring 10% rise in companies on Cayman’s register supporting cross-border investment strategies Cayman is home to more than 30,000 funds, managing $16 trillion in total assets

12 March 2026 – Cayman Finance reports record corporate activity in 2025 to support the funds and investment industry. Data published by the Cayman Islands General Registry show that the number of active companies and partnerships climbed to a new high, reflecting both sustained growth in traditional fund structures, and rising demand for vehicles designed for capital market access, insurance, digital assets and private wealth planning.

Active partnerships on Cayman’s Registry rose by 36% between 2020 and 2025, closely tracking the expansion in global private markets and fund formation activity. Partnerships increased from 31,733 in 2020 to 43,056 in 2025. This includes growth of 2,293 partnerships, or 5.6% in 2025 alone. The rise in partnerships mostly reflects the expansion of private equity, private credit and venture capital. Exempted limited partnerships (ELPs), the dominant structure for private investment funds, remain central to the pooling of institutional capital globally. Pension funds, sovereign wealth funds and insurance investors typically participate as limited partners, while managers operate through general partner entities that control investment decisions.

The number of private funds domiciled in the Cayman Islands has increased by 40% since the end of 2020 to reach 17,722 at the end of 2025, according to Cayman Islands Monetary Authority figures. As banks retreated from certain types of lending since the global financial crisis, private capital has expanded rapidly, requiring scalable partnership structures capable of accommodating complex investor arrangements and capital call mechanics. Cayman partnerships are widely used because they align closely with US partnership concepts familiar to investors while offering contractual flexibility and tax neutrality for cross-border capital flows.

Highest New Company Registrations Since 2021

The number of active companies on the Cayman Islands General Registry has risen by 10% since 2020 to reach 123,530. In 2025, the number of companies increased by 2,081, or 1.7%, while new company registrations reached 13,306 – the highest annual figure since 2021. Cayman’s entity regime serves as infrastructure for cross-border investment strategies, capital markets transactions and decentralised digital projects that require legally robust and flexible vehicles capable of operating across jurisdictions.

Some of the company registration figures mirror fund formation statistics. The number of mutual funds registered in the Cayman Islands increased by 8% between 2020 and 2025 to reach 12,876 active funds, according to CIMA statistics. In 2025, the number of mutual funds was only marginally higher than the previous year. Hedge funds, typically registered as mutual funds under Cayman’s regulations, are established as exempted companies and segregated portfolio companies. For open-ended funds, exempted limited partnerships and unit trusts are also used by institutional investors seeking trust-based structures with trustee oversight.

Source: Cayman Islands General Registry

Cayman is home to 30,598 funds in total as the world’s largest offshore funds domicile. Cayman funds managed US$16 trillion in total assets at the end of 2024, with a net asset value of US$9.1 trillion.

** Samantha Widmer, Director and Head of Funds and Capital Markets, at Cayman Finance, said:**“The latest data shows record growth across companies, partnerships and fund formations, reinforcing Cayman’s role as a leading global hub for investment, capital markets and digital asset structures. The increase in partnerships and fund registrations points to sustained demand for structures that combine tax neutrality, English common law certainty, political and economic stability, and a robust, commercially practical regulatory framework. As private credit, continuation vehicles, hedge fund strategies and tokenised fund models continue to evolve, Cayman is well placed to support the next phase of cross-border investment growth.”

** About Cayman Finance**

Cayman Finance is the Cayman Islands’ financial services industry association representing more than 150 member firms and 16 professional associations.

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