The Variable Capital Company (“VCC”) framework was introduced inJanuary 2020 and represents the latest in fund innovation in the Asian markets,providing investment fund managers with an alternative vehicle to structuretheir funds. Compared to traditional corporations, VCCs are designed to offergreater operational flexibility and cost savings required by investment funds,brought by the evolving needs of increasingly sophisticated investors.
Similarto other segregated portfolio or protected cell structures in offshorejurisdictions such as the Cayman Islands and British Virgin Islands, VCCs maybe constituted as a standalone or as an umbrella sub-fund structure. UmbrellaVCCs with underlying sub-funds may accommodate different investment strategies.
