For investment managers investing into relatively illiquid asset
classes (for example, managers to private equity funds, venture
funds, real estate funds and other analogous funds) in structuring
their fund vehicles through British Virgin Islands entities, the
fund vehicle utilised will almost certainly fall within the
statutory definition of a private investment fund
under the British Virgin Islands' Securities and Investment
Business Act, 2010 (as amended). The implication of this being that
the fund vehicle then needs to be regulated as a private investment
fund by the Financial Services Commission.
A fund will come within the statutory definition of a private
investment fund where the following two-part test is satisfied,
namely where it:
