Private Equity 2023: Cayman Islands

Private Equity Trends and Developments in the Cayman Islands

We continued to see robust levels of activity throughout 2022 notwithstanding market uncertainty, rising interest rates, a higher than usual inflationary environment, and tightening credit markets. This backdrop had an impact on transaction activity in late 2022 and early 2023 compared to 2021 levels. Nonetheless, there continues to be strong interest in the use of Cayman Islands structures, with sustained levels of entity formations in connection with fund formation and transactional activity.

Sponsors continue to look to the Cayman Islands when structuring and offering private equity products that provide strategies tailored to the current market environment, including infrastructure, credit opportunities, market dislocation and special situations opportunities funds and products with regional or focused investment mandates, including environmental, social and governance (ESG) strategies.