Cayman Islands Hedge Fund Trends: Fee And Liquidity Terms

As investor expectations, regulatory requirements and global market dynamics continue to evolve, the hedge fund sector is responding with increased flexibility and innovation when determining fee and liquidity terms.

In this article, we analyse the fee and liquidity terms of the open-ended funds launched by the Maples Group during 2024 and in the first three quarters of 2025. The Maples Group advises on approximately 33% of all Cayman Islands open-ended funds¹, providing a distinctive window into current market practice.

Fee Terms: Management and Incentive Fee Rates

The majority of funds launched in 2024 and in the first three quarters of 2025 continued to employ the classic management and incentive (or performance) fee model, with approximately 74% of the funds launched in 2024 charging both management and incentive fees, rising to 82% for funds launched in the first three quarters of 2025. However, the traditional '2 and 20′ fee model is no longer dominant,