Asia’s growing share of the global economy is creating fresh demand for Cayman Islands fund structures, according to Cayman-based fund platform CV5 Capital.
In a market outlook, it said Asia’s share of global gross domestic product measured on a purchasing power parity basis is projected to rise from 49.2% in 2025 to 49.7% in 2026.
Regional economic growth is forecast at about 4.5% next year.
CV5 Capital said Asia is expected to contribute around half of global growth during the period, with some projections placing emerging Asia’s share closer to 60% in a higher-tariff environment.
The Cayman Islands Monetary Authority-regulated firm said the shift is being supported by deeper trade ties within the region itself.
According to the report, intra-regional trade dependence in Asia increased from 56.3% in 2023 to 57.2% in 2024, signalling that Asian economies are becoming increasingly connected to one another rather than relying primarily on Western demand.
CV5 Capital said those structural changes are creating opportunities for private equity, hedge fund and digital asset managers targeting Asian markets, particularly as institutional investors seek broader regional exposure.
“The structural case for Asia is now difficult for serious allocators to dismiss,” said David Lloyd, chief executive officer of CV5 Capital.
“The harder question is execution. Managers with genuine regional expertise often carry the network and the insight, yet lack the regulated infrastructure that institutional investors require before they will commit. Closing that gap is where our platform does its work.”
The firm identified India, Japan, Southeast Asia and parts of China as key markets attracting investor attention, though it said each market is being driven by different long-term factors.
India continues to benefit from rising domestic consumption and expanding capital markets, while governance reforms in Japan are contributing to increased corporate carve-outs and take-private transactions, according to the report.
Southeast Asian economies including Vietnam, Indonesia and Thailand were identified as beneficiaries of supply chain diversification and digital economy growth.
CV5 Capital also said many institutional investors remain underweight in Asia relative to the region’s economic contribution, despite elevated levels of undeployed private equity capital across the Asia-Pacific market.
The firm said Cayman-domiciled fund structures remain widely recognised among Asian institutional investors and family offices, particularly for cross-border fundraising and investor onboarding.
