The Variable Capital Company (VCC) is a next‑generation corporate structure introduced under the Variable Capital Companies Act 2022, offering unparalleled flexibility and efficiency for investment fund management in Mauritius. It can function as a standalone entity or as an umbrella vehicle housing multiple sub‑funds and Special Purpose Vehicles (SPVs), all under a single legal entity.
- Flexible structuring: Sub‑funds within a VCC can be established as either open‑ended or closed‑end funds, allowing fund managers to tailor investment strategies, liquidity terms, and investor participation to specific mandates.
- Operational efficiency: The VCC and its sub‑funds/SPVs may share—
- A common board of directors
- A licensed fund manager regulated by the Mauritius Financial Services Commission (MFSC)
- A Collective Investment Scheme (CIS) administrator
- Other professional service providers
- This reduces complexity, drives cost efficiency, and streamlines fund administration.
- Governance options: For added independence, each sub‑fund or SPV may opt for separate legal personality and appoint its own board of directors.
- Strategic advantages: Enables fund managers to consolidate multiple investment strategies under one regulatory framework, fostering agility, scalability, and cost savings.
- Global competitiveness: By aligning with international best practices in fund structuring, the VCC strengthens Mauritius’s positioning as a forward‑thinking fund domicile and trusted financial services hub.
