There is a quiet but meaningful shift happening in how capital is structured globally.
Fund managers, family offices, and sophisticated investors are increasingly looking to Singapore, not only for opportunity, but for structure, stability, and trust. At the centre of this movement is the Variable Capital Company (VCC), a regulated fund framework that is gaining traction, particularly among those active in Asia-Pacific.
This shift may not be loud, but it is strategic, and it is accelerating.
A Structure Designed for Modern Capital Flows
Traditional fund vehicles have not kept pace with the way capital now moves across borders, strategies, and investor types. Investors today demand flexibility, privacy, and clarity, without compromising on governance or credibility.
Singapore’s VCC regime was introduced in January 2020 to meet these demands. Developed by the Monetary Authority of Singapore (MAS), the VCC allows for:
- The creation of standalone funds or umbrella structures with multiple sub-funds
- Segregated assets and liabilities between sub-funds
- Support for both open-ended and closed-ended investment strategies
- Potential tax exemption under the 13O and 13U schemes, subject to eligibility¹
Why the VCC Resonates Across Asia-Pacific
Singapore has long positioned itself as a regional hub for capital and cross-border investment. What is now changing is the way global fund managers and family offices are using it.
As of early 2024, over 1,000 VCCs and nearly 2,000 sub-funds have been launched, according to MAS figures cited in Ogier’s industry report2. These are not just headline numbers, they reflect an ecosystem maturing rapidly, supported by administrators, legal advisers, tax specialists, and fund managers.
Singapore offers:
- Access to over 100 double tax treaties
- Regulatory clarity in a globally recognised jurisdiction
- A clear legal path for redomiciling foreign funds to Singapore from places such as the Cayman Islands, Australia, and Delaware
For managers across Australia and Southeast Asia, Singapore offers geographic proximity, legal familiarity, and investor confidence, all in one.
Not Just for Institutions
The VCC is being adopted not only by large institutions, but also by:
- First-time fund managers seeking a scalable launch structure
- Multi-generational families consolidating cross-border investments
- Private capital vehicles with hybrid strategies
- Managers offering multi-asset, ESG, or thematic exposures
By allowing multiple strategies to be housed under a single corporate umbrella, the VCC supports cost efficiency, operational consistency, and investor clarity.
Why Now
The VCC is no longer new. It is proven, growing, and evolving.
Singapore’s regulators and industry stakeholders are actively developing what is being referred to as “VCC 2.0", a series of proposed enhancements that could include expanding manager eligibility and simplifying administrative processes3.
Meanwhile:
- VCC adoption is rising steadily
- The regional asset management sector continues to grow
- Cross-border structuring requirements are increasing due to shifting global regulation
All of this points to a timely opportunity to consider whether the VCC structure is right for your fund strategy or investor base.
Final Thought
Singapore’s Variable Capital Company framework offers more than administrative convenience, it provides access to a growing financial ecosystem built on credibility, flexibility, and governance.
If you are exploring how to structure capital across Asia-Pacific, the VCC may offer the right mix of efficiency and assurance. And as adoption increases, early movers are well positioned to benefit from a regime designed for the future of funds.
- The Section 13O and 13U tax incentive schemes are administered by the Monetary Authority of Singapore and are subject to eligibility requirements, including fund size, business spending, and use of a licensed Singapore-based fund manager. Approval is not guaranteed. Investors should seek independent legal and tax advice.
- Ogier’s industry report
- Waystone
Important information
This information is for accredited, qualified, institutional, wholesale or sophisticated investors only and is provided by Aura Group and related entities and is only for information and general news purposes. It does not constitute an offer or invitation of any sort in any jurisdiction. Moreover, the information in this document will not affect Aura Group’s investment strategy for any funds in any way. The information and opinions in this document have been derived from or reached from sources believed in good faith to be reliable but have not been independently verified. Aura Group makes no guarantee, representation or warranty, express or implied, and accepts no responsibility or liability for the accuracy or completeness of this information. No reliance should be placed on any assumptions, forecasts, projections, estimates or prospects contained within this document. You should not construe any such information or any material, as legal, tax, investment, financial, or other advice. This information is intended for distribution only in those jurisdictions and to those persons where and to whom it may be lawfully distributed. All information is of a general nature and does not address the personal circumstances of any particular individual or entity. The views and opinions expressed in this material are those of the author as of the date indicated and any such views are subject to change at any time based upon market or other conditions. The information may contain certain statements deemed to be forward-looking statements, including statements that address results or developments that Aura expects or anticipates may occur in the future. Any such statements are not guarantees of any future performance and actual results or developments may differ materially from those projected in the forward-looking statements. This information is for the use of only those persons to whom it is given. If you are not the intended recipient, you must not disclose, redistribute or use the information in any way.
Aura Group subsidiaries issuing this information include Aura Group (Singapore) Pte Ltd (Registration No. 201537140R) which is regulated by the Monetary Authority of Singapore as a holder of a Capital Markets Services Licence, and Aura Capital Pty Ltd (ACN 143 700 887) Australian Financial Services Licence 366230 holder in Australia.
