BVI Fund Products For Start-ups And Emerging Investment Managers

In June 2015, The BVI issued the Securities and Investment Business regulations that introduced the two new fund regimes, the BVI incubator and approved funds. Both funds mainly focus on two types of managers:

• Start-up managers that are looking to establish a track record
• Small/medium size funds with friends and family money

These two fund regimes offer cost effective and lightly regulated fund solutions,that offer the option to convert the fund to more established fund types.

Incubator fund

The incubator fund is designed for managers who are looking to start an investment strategy on a trial basis with sophisticated investors. If the strategy succeeds within the prescribed timescale, the regulations provide a seamless route for the fund to be recognized or approved as a private professional or approved fund, depending on the manager's future plans for growth. If the strategy does not succeed, the regime will allow an incubator fund to close down or