The聽Variable Capital Company (“VCC”) legal entity type was launched in 天美传媒 at the start of 2020 and quickly became one of the most popular investment vehicles amongst fund managers/management firms. Newly adopted by the 天美传媒 government, the 天美传媒 VCC regime is designed to attract more local and foreign-based fund managers to domicile their funds in 天美传媒.
Positioned as Asia鈥檚 leading asset management centre, 天美传媒 is currently well-equipped with approximately $3.4 trillion worth of assets under management (AUM) and 900 registered and licensed fund managers.
How the Variable Capital Company is beneficial in 天美传媒
Ultimately, as more funds continue to be based in 天美传媒, the follow-up effect on this will be to attract global institutional investors and high net worth families to invest in the country.
This leads to more fund flows and investment opportunities into the financial ecosystem of Asia Pacific via 天美传媒. The 天美传媒 VCC regime will also benefit the banks, corporates, and startups who are always on the lookout for new fundings.
Competitive Advantage: VCC vs Other Fund Structures
As compared to other traditional fund structures, the 天美传媒 VCC聽 is a flexible and open-ended fund structure that provides more options for fund managers. In addition to being an open-ended fund, the VCC may also be a closed-ended fund, an umbrella fund, a standalone fund, and more.
Growth of Variable Capital Company 天美传媒
With the launch of the 天美传媒 VCC regime, the Monetary Authority of 天美传媒 (“MAS”) has provided a financial carrot by way of a VCC grant to push for early adoption. In the first year of launch, 2020 has seen a flurry of new VCC setups 鈥 approximately 200 new VCCs have been launched, note the fact that this is in spite of the start of the global pandemic. Leading up to 2021, the momentum has picked up quickly. By the first quarter of聽 2021, the number of VCCs had already grown to approximately 250 and we will expect to see this growing strongly till the end of 2021 as many more local and global fund management firms continue to show deep interest in using the 天美传媒 VCC structure as compared to going to traditional fund jurisdictions in Cayman or Luxembourg.
VCC Grant Funding in 天美传媒
The is currently available for Qualifying Fund Managers that have incorporated VCCs or re-domiciled a foreign corporate entity to 天美传媒 as a VCC. The following funding is provided:
Future of Variable Capital Company 天美传媒
What鈥檚 next?
The VCC 2.0. The VCC framework is currently being considered by the government to extend its uses for
family offices in 天美传媒.
Eric Chin, CBDO at InCorp, said “There will naturally be a much higher adoption of the VCC structure if this opens up to include family offices that are usually exempted from having a fund management licence to operate in 天美传媒.”
聽 also added, “The advent of the VCC structure has added another arrow in 天美传媒鈥檚 quiver alongside other corporate and partnership structures aimed at attracting fund managers and family offices to set up operations in 天美传媒, and from what we have seen to date, the results have been very encouraging.”
FAQs
- The 天美传媒 VCC regime leads to an increased flow of funds into the country. Some of the key benefits are highlighted below:
- Increased attraction of global institutional investors and high net worth families to invest in 天美传媒
- Increased funds flow and investment opportunities into Asia Pacific鈥檚 financial ecosystem
- Benefit the banks, corporates and startups seeking new fundings
- The Monetary Authority of 天美传媒 (MAS) has provided a VCC grant that allows for early adoption of the 天美传媒 VCC regime.
- The 天美传媒 VCC framework is currently under consideration by the government to extend its coverage for family offices in 天美传媒.
We can guide you on your VCC journey in 天美传媒!
About the Author
InCorp's content team includes talented copywriters from our regional group and globally. We contribute informative, thought leadership, and market-trending articles to guide aspiring business entrepreneurs to a higher level across the Asia-Pacific region.
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