The Problem Statement
A successful Indian Alternative Investment Fund (“AIF”) had multiple institutional investors based in the US, Asia and Europe. They had a small group of operational staff who were not familiar with onboarding foreign investors, particularly those that were US based.
They were also concerned that had investors directly invested into the Indian master fund, they would each need to apply for an Indian tax code (PAN) which would have been time consuming and expensive.
The Solution
Amicorp’s capital markets team proposed setting up a Singapore Variable Capital Company (“VCC”) as a standalone structure, acting as a feeder fund into the Indian master fund.
The standalone VCC fund structure was created with our licensed Amicorp Singapore fund management team taking on the role of fund manager, and Amicorp’s corporate services and fund services teams providing the corporate secretary and fund administration, respectively. All three roles are required to be Singapore based.
The VCC feeder fund applied for the local tax code (PAN) which reduced the onboarding time significantly and saved the investors the need to apply themselves.
The Amicorp fund management team managed the compliance and operational processes, streamlining the onboarding, subscription, and redemption process.
The VCC structure resulted in the Assets Under Management (“AUM”) of the fund growing significantly to over USD100 million within one year.
How can Amicorp help?
Singapore VCCs funds can be structured as a standalone, sub fund or an umbrella entity, under which multiple ring-fenced sub-funds can be set up and managed by a licensed fund manager. They provide a flexible and efficient vehicle for investors looking to build or diversify their investments by streamlining management and operational processes that can reduce costs and manage regulatory requirements.
With VCC fund licenses in place in Mauritius and Singapore, our team can offer end-to-end support to help you set up a tailored investment vehicle to suit your needs, from fund set-up and administration, to ongoing fund management and broker-execution services. Get in touch with the team here to find our more.
