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.
