CAYMAN ISLANDS Law and Practice Contributed by: Sailaja Alla, Matt Mulry, Maree Martin and James Mossetto, Appleby
Appleby 9th Floor 60 Nexus Way
Camana Bay PO Box 190 Grand Cayman KY1-1104 Cayman Islands Tel: +1 345 814 2054 Email: salla@applebyglobal.com Web: www.applebyglobal.com
1. General 1.1 General Overview of Jurisdiction
has a history of stable government, committed to promoting the financial services industry. As a British Overseas Territory, the Cayman Islands has a familiar and reliable legal system based on English common law, supplemented by a modern and commercial statutory framework. With a sophis - ticated and well-developed court system, a history of stable government and a deep and respected bench of jurists very familiar with complex commercial cases, the Cayman Islands provides a secure venue for high- stakes commercial litigation. The ultimate appellate court for Cayman Islands matters is the Judicial Com - mittee of the Privy Council in London. 1.2 Key Trends Statistics produced by the Cayman Islands Monetary Authority for Q2 2025 show growth across both mutual funds and private funds. This firm’s funds practice has seen the majority of new funds launched in the past year focusing on equities, fund-of-funds, aggregator funds, continuation funds, private debt and digital assets. The use of subscription line facilities and net asset value loans by private equity funds continues to be a popular tool in capital raising. 2. Funds 2.1 Types of Alternative Funds and Structures Types of Alternative Funds There are no restrictions on the types of investment funds that can be established in the Cayman Islands. The types most commonly established include:
The Cayman Islands is a jurisdiction recognised world - wide as an international financial centre of the high - est calibre. Leading financial institutions, Fortune 500 companies, and private and public businesses from across the globe have chosen the Cayman Islands as their jurisdiction of choice for many reasons, including the following. • Reputation – owing to its well-established legal system, stability and strong financial services industry, the Cayman Islands has a reputation as a high quality offshore centre. • Flexibility – the Cayman Islands has the advantage of progressive “leading edge” legislation, devel - oped in consultation and collaboration with indus - try stakeholders. • Tax neutrality – the Cayman Islands levies no capi - tal gains, income, profits, corporation or withhold - ing taxes (whether on the investment fund or its investors or managers). • Compliance culture – the Cayman Islands has long been committed to implementing best international practices and is compliant with the anti-money laundering and anti-terrorist financing requirements of the Organisation for Economic Co-operation and Development (OECD) and the Financial Action Task Force. The Cayman Islands has entered into a number of tax information exchange agreements. • Stable and business-oriented government – the Cayman Islands is a British Overseas Territory and
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