Private Credit Funds: Governance And Liquidity Considerations

Private credit continues to play an increasingly significant role in global capital markets, as borrowers and investors seek alternatives to traditional bank lending. The asset class has expanded rapidly in recent years, driven by demand for flexible financing solutions and by institutional investors seeking stable, income-generating returns. The Cayman Islands remains a commonly selected domicile for private credit funds, reflecting its established legal framework, tax neutrality and familiarity among global investors and service providers.

As private credit strategies grow in scale and complexity, fund sponsors and managers are increasingly focused on governance, valuation and liquidity considerations associated with managing illiquid credit assets.