Private equity firms could come under pressure to set up their funds outside of the Cayman Islands — a popular domicile for the vehicles — after the British overseas territory was put on the EU’s so-called tax haven “blacklist”.

Pension funds in Europe are already beginning to ask questions, and if the Cayman Islands is not removed from the list of non-cooperative tax jurisdictions next October — when the EU will have its next review — it could create a number of problems for buyout groups.