This inaugural edition of the Conyers Investment Funds
Report provides a variety of updates and insights relevant to the
investment funds space in the Cayman Islands, British Virgin
Islands, and Bermuda. The report provides access to Conyers
resources including upcoming filing deadlines, details of key
industry events, and recent thought leadership.
In this edition we touch on trending topics including the
shifting landscape of private equity fundraising in Asia, the rise
of digital assets in the Cayman Islands, and the growth of Cayman
Islands private funds. We also explore tokened funds in the BVI,
share key regulatory updates for Bermuda investment funds, and
examine Japanese investment by Cayman Islands funds. The team
reflects on takeaways from one of the banner events of the industry
– the IBA International Conference on Private Funds in
London, held this past March. Conyers investment funds guides,
tools, and relevant legal memoranda are also linked for easy
reference.
Industry Statistics
Trending Topics in Investment Funds
Digital Assets on the Rise in Cayman
Digital Assets are surging as an asset class of interest for
hedge funds. The Global Crypto Hedge Fund Report recently
published by the Alternative Investment Management Association
(AIMA) and PwC shows that just under 50% of hedge funds surveyed
(63% of which are Cayman funds) now have exposure to digital assets
– a notable 72% increase from 2023. The report credits
increased regulatory clarity and ETFs with the rise of investor
confidence. Other key observations from the report include a shift
to derivative trading in digital assets, a burgeoning interest in
tokenization, and increased demand from institutional
investors.
Shifting Landscape of PE Fundraising in Asia in
2024
A marked shift is taking place in the Asian private equity (PE)
and venture capital (VC) fundraising arena. 2024 saw the lowest
level of PE and VC fundraising in Asia in 12 years – and a
29% decrease from 2023. Within this context sits a remarkable
bubble: deals targeting Japanese companies led to an almost 41%
increase in PE and VC-backed investments in the country. Standard
& Poors cites Japan’s low interest rates as a key factor in
creating investor opportunity, alongside succession challenges
faced by the many family-owned businesses in the country. The
Japanese business community is more open to private equity
investment than it has ever been. Watch this space for further
growth 2025!
Tokenisation of Funds in BVI
The British Virgin Islands has emerged as a leading jurisdiction
for offerings of tokens and other virtual assets. BVI tokenised
investment funds offer many advantages, including a balanced
regulatory framework, enhanced liquidity and accessibility,
increased transparency and security, and cost-effectiveness. The
BVI Approved Manager Regime makes the jurisdiction even more
attractive, offering regulatory flexibility, technological
accommodation, cost-effectiveness, and global reach that enables
fund managers to capitalise on the evolving landscape of digital
finance.
Growth in Cayman Islands Private Funds
The number of Cayman Islands private funds has been steadily
growing over the past five years, with an overall increase of 36.2%
from 2020 to the end of 2024. This outpaces the growth seen in the
Cayman Islands open-ended mutual funds space.
Regulatory Updates for Bermuda Investment
Funds
The Investment Business Amendment Act 2024 came into operation
in Bermuda on 29 July 2024. It amends the Investment Business Act
2003 to strengthen the supervision and regulation of Bermuda based
investment exchanges and clearing houses. In particular, the
legislation introduces a framework for an investment exchange or
clearing house to apply to the Bermuda Monetary for designation as
a “recognised investment exchange” or “recognised
clearing house”, allowing it to carry on such business in
Bermuda without requiring a licence or registration.
Conyers Cayman Islands Office Expands its Funds Practice
Conyers investment funds practice in the Cayman Islands has
experienced significant growth over the past few years, and now
comprises ten experienced funds specialists. The team brings
top-tier expertise across the spectrum of fund related legal
services. Working with Conyers fund advisers has always brought a
level of service that goes beyond the initial set-up of your fund
– and now we are better equipped than ever before to provide
clients with the highest quality legal advice.
Click here to read more.
Conyers FIG is now Conyers Governance
The Conyers Cayman-based Fiduciary Institutions Group (FIG) is
now known as Conyers Governance. This change reflects our continued
commitment to providing exceptional governance services while
aligning more closely with market and industry evolution.
In recent years, the Cayman Islands has introduced a series of
significant regulatory reforms, further solidifying its reputation
as a leading, well-regulated international financial centre. Key
initiatives include the adoption of the Corporate Governance and
Internal Control Rules, updates to the Anti-Money Laundering (AML)
Regulations, and the enactment of the Beneficial Ownership
Transparency Act, among others.
These regulatory advancements have been acknowledged by the US,
EU, and UK, recognising the jurisdiction’s robust and effective
systems for AML, counter-terrorist financing (CFT), and the
automatic exchange of information (AEOI).
Our team of governance specialists are able to assist clients
navigate the Cayman Islands regulatory landscape. We offer expert
guidance and assistance to a wide range of investment funds,
structured and asset finance, and multinational corporate entities.
To learn more about our services, and meet the Conyers Governance
team, click here.
Key Conference Takeaways
Conyers delegates share their insights from banner events in
the industry.
Industry Panel, Bangkok – Cayman Islands: Key
Insights into a Premier Fund Jurisdiction
Director and Head of Singapore office Preetha Pillai joined industry leaders in
Bangkok this April to discuss the many reasons for Cayman’s
status as a premier global funds jurisdiction. Preetha’s
remarks on the jurisdiction’s legal and regulatory framework
formed part of broader panel discussions around fund structuring,
tax considerations, corporate governance and the role of
independent directors, investment management and the role of other
service providers such as fund administrators, and risk
considerations, particularly in the current volatile market
conditions. Co-sponsor Bolder Group has produced an excellent video showcasing highlights of the event.
IBA International Conference on Private Funds,
London
The annual IBA Private Funds conference in London was held
this year from 9 – 11 March. Cayman Counsel Jennifer Sangaroonthong was among the Conyers
delegation and shares her key takeaways from this cornerstone event
in the funds industry calendar.
The conference provided valuable insights into the evolving
landscape of private funds. With discussions ranging from
macroeconomic uncertainty to emerging investor trends, industry
experts dissected key challenges and opportunities shaping the
sector.
Seven major takeaways from the event
- Macroeconomic Uncertainty: A Mixed Bag
- Sponsor Trends: Consolidation and Strategy Diversification
- Investor Trends: Selectivity and Bespoke Arrangements
- New Capital Sources: Broader Reach
- Continuation Vehicles: The New Norm
- Credit Funds: Embracing Evergreen Structures
- Insurance Companies: The Role of Rated Note Feeders
Click here to read more.
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
