May 2025
In this month’s Alternative Investor, we explore the latest developments in the alternatives space and head to the Cayman Islands to uncover what makes the jurisdiction a global powerhouse.
In the news, April was marked by volatility, which equity hedge funds navigated relatively well, while systematic managers struggled. Fundraising remained robust: EQT led with a $10bn first close for its Asia IX fund, targeting $14.5bn, and Apollo closed $5.4bn for its hybrid S3 platform. Secondaries stayed hot with various new raises, and retail access gained momentum through fresh offerings from KKR, Capital Group, Apollo and Pimco. Yale is eyeing a $6bn PE sale, highlighting surging demand in secondaries, while Millennium explores a stake sale as part of succession planning. M&A activity picked up, alongside renewed institutional interest in crypto. Plus, much more…
Carey Olsen’s Emily Cornhill looks at Cayman’s evolution into a global hub with over US$8 trillion in assets.
Waystone’s Alaina Danley underscores the jurisdiction’s benchmark-setting governance and commitment to innovation.
Grant Thornton’s Greg O’Driscoll and Denis Collins note that Cayman continues to lead offshore fund formation, driven by tax neutrality, regulatory strength and globally trusted structures.
FundFront’s Amin Naj points to Cayman’s role in enabling the rise of direct and co-investment models.
Harbour’s Leanne Golding emphasises Cayman’s commitment to independent oversight and enhanced governance in closed-ended funds.
In Letter from America, Prosek’s Mark Kollar looks at the rise of tokenization, which is increasingly emerging as a key theme in private markets, promising broader access, greater efficiency and future growth.
We conclude with a regulatory update from RQC Group, highlighting notable developments across the UK and US. In the UK, the FCA and HM Treasury unveiled plans to reform AIFMD, while the FCA also published its biannual Regulatory Initiatives Grid and proposed streamlining the definition of capital for investment firms. Additional updates include a revised FCA webpage alert for firms and a Prudential Regulation Authority fine related to Wyelands Bank. In the US, recent market volatility was a timely reminder for private fund advisers on their obligations under the SEC’s Form PF reporting requirements.