The Variable Capital Company: a soon to be reality for Mauritius
By Intercontinental Trust Ltd
On 16 April 2021, Cabinet agreed to proceed with the drafting of the Variable Capital Companies Bill. It will be recalled that the introduction of the Variable Capital Company (VCC) was one of the action points that emanated from the National Budget 2020/2021 in line with the 10-year Blueprint that has been established for the Mauritius International Financial Centre (IFC).
The VCC could be a game changer for the Mauritius IFC as it cements its value proposition for cross-border investors. It is a legal structure that can be used in both the traditional and alternative investment fund market space. We expect that the advent of the VCC will garner the interest of private wealth managers and institutional investors thanks to its capital variability and cost efficiency.
It will also be ensured that the legislative framework regulating the VCC will comply with the Anti-Money Laundering/Combatting the Financing of Terrorism requirements.
Watch this space for our newsletter covering the technicalities and features of the Mauritius VCC, which will be released once the Variable Capital Companies Act is enacted.
Established in 1999, Intercontinental Trust Limited (ITL) provides a plethora of financial and fiduciary services to a diversified client base including private equity firms, real estate multinationals, financial institutions, investment managers and high-net-worth individuals among others.
ITL is located in Ebene, the financial centre of Mauritius and has offices in Singapore, Seychelles and representative offices in South Africa and Kenya.