BVI Funds offers flexible, tax-efficient, and confidential fund structures ideal for global investors. As one of the world’s largest offshore funds domicile, the British Virgin Islands (BVI) is a globally recognized offshore jurisdiction. The BVI is also committed to adhering to international financial regulations, ensuring that BVI domiciled funds meet global compliance requirements, which is crucial for cross-border investments.
Types of BVI Fund Vehicles
A BVI fund vehicle refers to investment funds established in the British Virgin Islands. Funds in the BVI can be structured as companies, limited partnerships, segregated portfolio companies (SPCs), or unit trusts, providing tailored solutions for diverse investment needs.
BVI Fund Licenses
Open-Ended funds are those where investors have the right to redeem on demand a proportionate interest in the value of the Fund at a specified valuation period, and are required to be licensed by the FSC, the BVI regulatory authority.
Open-Ended funds include Public Funds, Professional Funds, Private Funds, Approved Funds, or Incubator Funds, each with their separate regulatory requirements. Once an entity is licensed as a fund, it will be subject to the regulatory requirements of its particular fund license. Closed-Ended funds are registered as Private Investment Funds, where investors do not have an automatic right of redemption.
Key Benefits of SPCs
The Segregated Portfolio Company (SPC), the most commonly used structure for private family funds, allows a company to segregate the assets and liabilities of different portfolios (also known as ‘cells’ or ‘sub funds’) within a single corporate structure. The assets and liabilities of each Segregated Portfolio (SP) within the SPC are attributable to the SP to which the assets and liabilities belong to and are protected by statute from the general liabilities of the SPC and the liabilities of all the other segregated portfolios within the same SPC.
1. Diversification
A fund structure allows different family members to individually tailor their asset allocations based on different portfolio strategies. This may be setup as separate fund vehicles or a single SPC fund structure.
