Video – celebrating 10 years: Cayman Islands bullish on future for jurisdiction

Cayman Island service providers expect the jurisdiction to continue to have continued success as a hedge funds jurisdiction, although growth over the next 10 years may be at a slower pace than 2000-10.

Hedge Funds Review asked leading members of the hedge funds industry in the Cayman Islands where they thought the hedge funds industry and the jurisdiction itself would be 10 years from now.

“I see the jurisdiction very much as remaining as the leading hedge fund domicile,” commented. Mark Lewis, chairman of the executive committee of the Alternative Investment Management Association, Cayman Islands, and managing partner at Walkers. He believes Cayman’s innovation and efficiency as a jurisdiction will continue to attract hedge funds over the next 10 years. 

Richard Finlay, partner at Conyers Dill & Pearman, Cayman Islands, believes the island state is unlikely to see the same level of growth over the next 10 years but agrees it will remain a “robust and sophisticated financial services industry”.

At DMTC Group, partner and independent hedge fund director John Lewis says he is optimistic. However, he is concerned that regulation in other parts of the world could negatively impact Cayman. Despite this he thinks Cayman’s history “of being nimble, more proactive and more quickly reactive than some of the other jurisdictions” should keep it as the number one jurisdiction.

At Walkers partner Ingrid Pierce said Cayman will “continue to thrive and continue to be at the forefront of the hedge fund industry”. She points out that the industry is evolving and Cayman needs to ensure its regulations and approach to hedge funds remains fresh.

Jeremy Walton, a partner at Appleby, expects to see evolving fund structures reflecting the changing nature of the business as well as mirroring whether investors or fund managers have the upper hand on the investment terms.

At Ogier marketing partner and co-head of the global investment funds team Peter Cockhill said he hoped Cayman would continue as the dominant hedge fund domicile, although he admits it may not retain such a significant market share in future. ”There’s a lot of competition out there. It’s very hard to see how it will go,” he noted.

Canover Watson, managing director at Admiral, has faith in the Cayman model. “We have to ensure there is a balance between profits and growth and proper governance and regulation,” he stated.

“I think hedge funds will continue to be a successful vehicle for many years. Cayman, being the leader in hedge fund domiciliation, must now find a way to capitalise on that strength and leverage from that position to further enhance the jurisdiction,” he concluded.