In a recent article in Forbes, it was noted that even though BlackRock's assets under management rose to a record $6.8 trillion, its clients were "increasingly migrating from high-margin active management to low-margin index-linked products...".  The exception for high-margin active management?  Private equity.

Many of our PE clients continue to raise significant amounts.  And some traditionally hedge-fund focused clients are diversifying into private equity.

According to the SEC's private funds report for Q4, 2018 (released on July 23, 2019) which reflects data collected through Form PF and Form ADV filings, 56.9% of PE funds were domiciled in the US and 30.6% were domiciled in the Cayman Islands.  The next most popular domicile had just 2.4% of PE funds. (Note: the numbers reflect percentages of NAV.)

The Cayman Islands are the jurisdiction of choice for offshore private equity funds and we expect that as the upward trend towards allocations to private equity continues, there will be a related number of new fund launches.