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How can VC start Fund Management Business in Singapore

How can VC start Fund Management Business in Singapore | Singapore Compliance

Fund management company

A fund management company is an entity in which managers who hold a license or a registered with the Monetary Authority of Singapore (MAS) oversee the funds of wealthy people and big companies. The managers are supposed to formulate an investment strategy to produce greater returns on the funds or portfolios of their clients.

Venture capital

Venture capital (VC) is a channel through which venture capitalists or angel investors offer funds offered to startups and businesses that have an excellent potential for growth in return for equity in their business. Venture capital firms or high-net-worth individuals usually make venture capital investments.

Funds managed by VCFMs

A venture capital fund manager (VCFM) can oversee funds that satisfy the following requisites:

  • Make investments of at least 80 percent of committed capital in securities directly issued by an unlisted company, incorporated for not more than ten years at the instance of the initial investment.
  • Make investments of up to 20 percent of committed capital in other unlisted companies that do not satisfy the sub-criterion, that is, they have been incorporated for no more than ten years at the instance of initial investment, and/or the investments occur via acquisitions from other investors in the secondary market.
  • Should not be repeatedly accessible for subscription, and should not be convertible as per the preference of the investor; and
  • Are given only to accredited and/or institutional investors.

Who can apply for the VCFM license?

To assist startups in accessing capital, the MAS has made the procedure of obtaining a VCFM license simple by shortening authorization for a VC manager. Candidates can be representatives for a VCFM license if they carry out essential functions in a fund management company: Portfolio construction and allocation, Business development and marketing, or client servicing and Research and advisory.

MAS Licenses We Can Help you in

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