Guide To Private Credit 2026 In The Cayman Islands

This country-specific Q&A offers insights into private credit laws and regulations in the Cayman Islands, covering topics such as vehicle formation, recent regulatory developments, taxation, and more.

1. Brief overview of the private credit market

Private credit funds are a significant component of the alternative investment landscape. "Private credit", which refers to non-bank lending to businesses, is characterised by private equity funds, alternative investment funds, hedge funds and other entities that operate as private lenders to smaller or riskier borrowers that are unable to obtain financing from banks and other financial institutions. Access to such funding is particularly crucial in times of economic uncertainty. Global private credit assets under management in 2024 reportedly exceeded $1.5 trillion, growing from under $400 million in 2008. Initially, growth in the private credit market was driven by the stricter lending requirements of banks and their