The Cayman Islands is the largest domicile for PE funds outside the U.S., largely because of its sophisticated legal regime, which has constantly evolved to keep pace with the global regulatory environment and the demands of key stakeholders. The Cayman Islands recently introduced the Private Funds Law, 2020 (PF Law) for closed-end private funds that seeks to further strengthen investor confidence and to ensure the Cayman Islands remains the preeminent jurisdiction for fund formation. In a guest article, Mourant partner Alex Last examines the primary features of the PF Law and its anticipated effect on the PE industry, and closed-end fund managers generally, in the Cayman Islands. Specifically, this article analyzes changes introduced by the PF Law; details the registration requirements and other practical considerations for PE sponsors; and explains the impact of the Cayman Island being deemed a non-cooperative tax jurisdiction by the E.U. For more on the Cayman Islands, see “How Fund Managers Should Prepare for the Cayman Islands Data Protection Law” (Nov. 12, 2019); and “Key Similarities and Differences Between the BVI and Cayman Islands As Fund Domiciles” (Sep. 3, 2019).