The Variable Capital Company (“VCC”) framework was introduced in January 2020 and represents thelatest in fund innovation in the Asian markets, providing investment fund managers with an alternativevehicle to structure their funds. Compared to traditional corporations, VCCs are designed to offergreater operational flexibility and cost savings required by investment funds, brought by the evolvingneeds of increasingly sophisticated investors.
Similar to other segregated portfolio or protected cell structures in offshore jurisdictions such as theCayman Islands and British Virgin Islands, VCCs may be constituted as a standalone or as an umbrellasub-fund structure. Umbrella VCCs with underlying sub-funds may accommodate different investmentstrategies.
