Establishing An Approved Fund In The BVI: Key Considerations

Are you considering launching a smaller strategy or friends and family fund?

The British Virgin Islands ("BVI") offers a streamlined and cost-effective solution through its Approved Fund Product. Introduced on 1 June 2015, the Approved Fund Product is designed to minimise compliance costs while providing an effective regulatory framework.

The key considerations of an approved fund are:

• Maximum Number of Investors: Limited to 20. If exceeded for over two consecutive months, the fund must convert to a professional or private fund, commence liquidation, or cease to be a mutual fund.
• Net Assets Cap: Net assets must not exceed US$100 million. Similar to the investor limit, exceeding this cap for over two consecutive months requires conversion, liquidation, or cessation as a mutual fund.