Variable Capital Company (VCC)
A game-changer for your asset and wealth management needs
A VCC is a company incorporated under the Companies Act and which carries its activities through sub-funds and Special Purpose Vehicles (SPVs).
The Variable Capital Companies Act 2022 (the ‘VCC Act’), enacted on 12th April 2022, establishes a comprehensive legislative framework for setting up various types of funds within a single legal entity. Unlike a Protected Cell Company, each sub-fund or SPV within a VCC has the option to elect for a legal personality distinct from the VCC. The Mauritius Financial Services Commission (“FSC”) has the authority to approve the operation of a sub-fund as either : A collective investment scheme, or A closed-end fund.
Purpose and Structure
Primary Objective
The primary objective of a VCC is to operate as a fund.
Role of SPVs
SPVs serve as ancillary vehicles to the VCC or its sub-funds. Asset and Liability Segregation: The VCC Act ensures the segregation of assets and liabilities among sub-funds and SPVs, safeguarding the financial independence of each entity.