From Intelligent Insurer

In the face of economic sluggishness and regulatory change, the Cayman funds industry has marched steadily on—and looks set to prosper for many years to come, says Jarrod Farley of Carey Olsen.

The Cayman funds industry has been quietly and steadily continuing its growth trajectory over the past decade, shrugging off the temporary effects of the global financial crisis, despite ongoing sluggishness in the global economy.

This trend looks set to continue, notwithstanding a sense of impending doom in the macroeconomic outlook, as the US engages in the international trade equivalent of gunboat diplomacy, and the EU fights a wave of popular nationalism that threatens its cohesion.

Pessimism may seem the order of the day, but the Cayman funds industry is more mature and even more resilient than it was a decade ago. Its professionals, its products and its regulator have all been strengthened by the experiences of the past decade, and the demand for Cayman funds has never been stronger.

The fate of the Cayman funds industry has broadly mirrored the global alternative funds industry over the past two decades. Growing rapidly from the late 1990s, Cayman became the leading jurisdiction for alternative fund formations by the mid-2000s and is now the domicile for around 70 percent of the world’s hedge funds and private equity funds, with Cayman hedge funds managing total assets close to $7 trillion by the end of 2017.

For more on this story go to; https://www.intelligentinsurer.com/article/cayman-funds-resurgent