Variable Capital Company (VCC) Structure

we believe that an effective wealth strategy requires not just capital but also a resilient and agile structure.

Why Choose a VCC Structure?

Superior Flexibility

You can establish the VCC as a standalone fund or as an umbrella fund with multiple sub-funds.
It supports both open-ended and closed-end strategies.
The variable capital characteristic enables more fluid issuance and redemption of shares — avoiding cumbersome corporate formalities.
Distributions can be made out of capital (not just profit), subject to applicable regulations.
Clear Legal Separation

Under an umbrella VCC, each sub-fund’s assets and liabilities are ring-fenced and legally kept separate from those of other sub-funds. This ensures that issues in one sub-fund cannot impact others.
Economies of Scale

Using shared service providers (e.g. legal, audit, administrative) across a VCC and its sub-funds can result in cost efficiencies not typically available to standalone fund structures.
Investor Confidentiality

VCCs are not required to disclose their shareholder register to the public. (However, regulators and authorities may access it when necessary.)
Tax and Incentive Opportunities

Under certain schemes and conditions, income from designated investments may qualify for tax exemptions or incentives. Qualified funds can benefit within Singapore’s regulatory framework.

OUR VCC OFFERING

As an authorized fund manager, Avallis Investments offers end-to-end support in the establishment and ongoing administration of Variable Capital Companies (VCCs).

Our scope of service includes advising on the appropriate structure, assisting with incorporation and constitutional documentation, and preparing the necessary legal agreements such as Investment Management Agreements, Private Placement Memoranda, and Subscription Documents.

We also provide board representation where required, oversee fund administration and valuation processes, and coordinate investor reporting and NAV calculations in accordance with regulatory standards.

In addition, Avallis facilitates the opening and management of bank accounts, including segregated accounts for each sub fund, and liaises with external auditors and tax professionals to ensure full compliance with statutory and tax requirements.

Depending on the client’s objectives and operational needs, Avallis Investments can undertake full management of the VCC or deliver targeted support in specific areas of the structure.

OUR TRIPARTITE RELATIONSHIP

1. Client engages Avallis through signing an Investment Management Agreement (IMA).
2. Client allows Avallis a Limited Power of Attorney (LPOA) that enables Avallis to instruct the bank on behalf of the client. The LPOA does not allow Avallis to withdraw funds, other than agreed upon management fees.
3. Avallis will assist client to open an account with the bank.
4. Avallis has an agreement with the bank that allows the management of the client assets.
5. Avallis gives purchase and sell order to the bank on behalf of the client.
6. Bank confirms trade execution with Avallis.