Service Providers |
Professional Fund |
Private Fund |
Approved Fund |
Incubator Fund |
Suitability |
Full-fledged hedge fund eg UK, US | Significant ‘family & friend’ offering | Smaller ‘family & friend offering’ while emerging/start-up managers prove track record | Smaller ‘family & friend offering’ while emerging/start-up managers prove track record |
Maximum Assets Under Management |
Uncapped | Uncapped | US$100 million | US$20 million |
Max no. Investors |
Uncapped | 50 (but no cap if made on ‘private basis’) | 20 | 20 |
Investor Qualification Requirements |
‘professional investors’ only | N/A | N/A | ‘sophisticated private investors only’ |
Min. initial investment per investor |
US$100,00 (exceptions for parties connected to investment manager exist) | N/A | N/A | US$20,000 |
Max. duration |
N/A | N/A | N/A | 2 years with 12 month extension possible. At end of term, fund must be wound up or be converted into approved, private or professional fund |
Mandatory Investment Manager? |
Yes | Yes | No | No |
Mandatory auditor (need not be BVI) |
Yes | Yes | No | No |
Mandatory custodian bank? |
Yes | Yes | No | No |
Mandatory administrator? |
Yes | Yes | Yes | No |
Foreign service providers allowed? |
Yes provided provider is from an ‘approved’ jurisdiction eg US, UK, Barbados | Yes provided provider is from an ‘approved’ jurisdiction eg US, UK, Barbados | Yes provided provider is from an ‘approved’ jurisdiction eg US, UK, Barbados | Yes provided provider is from an ‘approved’ jurisdiction eg US, UK, Barbados |
Director requirements? |
2 – can be resident anywhere but should be professional with suitable track record | 2 – can be resident anywhere but should be professional with suitable track record | 2 – can be resident anywhere but should be professional with suitable track record | 2 – can be resident anywhere but should be professional with suitable track record |
Realistic timeframe to launch |
3-6 weeks | 3-6 weeks | 1-2 weeks | 1-2 weeks |
Realistic cost! (not including cost of functionaries as required nor disbursements) |
US$25,000+ | US$18,000 | US$12,000 | US$9,000 |
Wealth structuresBVI Fund Factsheet
March 24, 2020by Stephen Abletshauser
