Panama Private Funds

This note is designed to provide basic information about establishing Panama Private Funds.

Introduction

There are two types of private fund (fondo privado) in Panama, namely, a private investment fund with up to 50 qualified investors or a private investment fund with up to 20 investors (an "FP").

The operation of FPs is governed by Decree-Law No.1 of 8 July of 1999 (the "Securities Act") together with Regulation No.5 of 23 of July of 2004 (the "Regulations") issued by the Superintendency of the Securities Market (the "SSM"), which is the governmental body responsible for regulating funds in Panama.

There is no restriction on the type of assets the FP can invest in. However, should the FP hold local assets then it may require additional regulation in Panama.