Equity-focused strategies accounted for the largest share of open-ended investment funds launched in the Cayman Islands in 2025, according to a report by Maples Group.
The “Cayman Islands Trends & Insights: Open-Ended Funds Report 2026” analyses funds Maples advised on during 2025 and provides a snapshot of market practices across strategy, governance, fee structures and liquidity terms.
As of Dec. 31, 2025, 12,876 funds were registered with the Cayman Islands Monetary Authority under the Mutual Funds Act, continuing a long-term upward trend since 2017. The Maples Group said it acts for approximately one-third of those funds.
Equity strategies have largest share
Equity strategies represented about 31% of new fund launches in 2025, the largest single category, followed by fixed income and credit strategies. Macro, multi-strategy and fund of funds vehicles also comprised a significant portion of launches.
Within equity, more than half of funds used long/short strategies, with long-only, growth equity and equity-hedged approaches making up the remainder.
The report also found that 17% of open-ended funds launched in 2025 expressly permitted investment in digital assets, up from 14% in 2024.
Manager profile and governance
North American managers accounted for 56% of launches in 2025, with Europe and Asia contributing 20% and 16%, respectively. About 82% of new funds had a regulated investment manager, continuing a multi-year trend, the firm said.
Independent oversight remained common. Among corporate funds launched in 2025, 83% included at least some independent directors, and 76% had boards that were entirely or predominantly independent. For partnerships, 42% incorporated independent governance mechanisms.
Female representation at senior levels remained limited, with 17% of funds naming at least one female key person and 3% reporting a majority of female key persons, according to the report.
Structures and fees evolve
The traditional “classic” master-feeder structure accounted for 25% of 2025 launches, up from 18% in 2024, while single-legged master-feeder and stand-alone structures each made up roughly a quarter of new funds. Corporate vehicles remained the most common fund type, followed by exempted limited partnerships.
Most new funds (84%) charged both management and incentive fees, though the report said the “2 and 20” model is no longer dominant. High-water marks and loss carryforward provisions were present in about 88% of funds charging incentive fees.
In terms of liquidity, more than 80% of funds offered monthly or quarterly redemptions, and 78% had notice periods between one and three months. Redemption gates were included in 55% of launches, while 37% incorporated side-pocket provisions.
Outlook for 2026
The report notes that global hedge fund industry capital surpassed $5 trillion at the end of 2025, marking the strongest year of investor inflows since 2007. It said the Cayman Islands is well positioned to benefit from continued allocations, as well as from growth in separately managed accounts and tokenised fund structures.
