TEN USE CASES FOR VARIABLE CAPITAL COMPANIES (VCCs)
Variable Capital Companies (VCCs) are a relatively new corporate structure first introduced in Singapore in 2020, and more recently in the Mauritius in 2022. Designed to provide a flexible and cost-effective vehicle for investment funds and other collective investment schemes, VCCs have quickly become a popular choice for fund managers and investors looking to streamline their investment processes and reduce compliance costs.
With their innovative features, such as a flexible capital structure, simplified regulatory processes, and tax-efficient framework, VCCs offer numerous advantages for a wide range of investment vehicles.
Here are ten use cases for VCCs:
- Investment Funds: VCCs are primarily designed for investment funds, and they offer several advantages over traditional investment structures, including reduced regulatory requirements
- Private Equity and Venture Capital Funds: VCCs are particularly well-suited to private equity and venture capital funds. They can be used to set up both open-ended and closed-ended funds, and they offer a flexible and streamlined way to manage the investment process
- Family Offices: VCCs can be used by family offices to manage their wealth and investments. VCCs provide a flexible and tax-efficient way to manage family assets and can help to streamline the administration and reporting processes
- Hedge Funds: VCCs are a popular choice for hedge funds due to their flexibility in investment strategies, streamlined regulatory process, and cost-effectiveness
- Private Funds: VCCs can be used to set up private funds, providing a flexible and cost-effective way to manage investments and meet investor requirements
- Infrastructure Funds: VCCs can also be used to set up infrastructure funds, which are investment vehicles that invest in infrastructure assets such as roads, bridges, and utilities. VCCs offer a flexible and streamlined way to manage these funds
- Renewable Energy Funds: VCCs can be used to set up renewable energy funds, which are investment vehicles that invest in renewable energy projects such as solar, wind, and hydropower. VCCs offer a flexible and cost-effective way to manage these funds
- Collective Investment Schemes: VCCs can be used to set up a variety of collective investment schemes, such as mutual funds, unit trusts, and investment trusts, providing a flexible and streamlined way to manage these schemes
- Real estate: VCCs can be used to invest in real estate assets, such as residential or commercial properties, providing investors with exposure to this asset class without the need for direct ownership
- Re-domiciliation of funds: Established funds that are domiciled in other countries and have similar structures to those of the VCC can be re-domiciled as VCCs
How can Amicorp help?Our team comes with a wealth of experience in asset management, with in-depth market knowledge and access to a support network that spans the entire VCC eco-system. If you would like to find out more about how Amicorp can help set and manage your VCC, or want to talk to us about different fund structuring solutions, please contact the team here.