Mauritius has long stood as a premier international financial centre, offering a robust legal framework and an array of innovative investment vehicles. In 2022, the country introduced a groundbreaking structure—the Variable Capital Company (VCC)—through the Variable Capital Companies Act, ushering in a new era of flexibility and efficiency for fund managers. In 2025, this structure is gaining momentum as institutional investors and asset managers seek sophisticated ways to structure multi-strategy portfolios.
A Variable Capital Company is a corporate entity that accommodates multiple sub-funds and special purpose vehicles (SPVs) under a single legal umbrella. Each sub-fund or SPV may elect to have a distinct legal personality, enabling segregation of assets and liabilities — so the financial performance or risk of one sub-fund does not impact the others. Compared to traditional umbrella funds or Protected Cell Companies, VCCs offer enhanced flexibility. For example, within a single VCC, one sub-fund can operate as a Collective Investment Scheme, while another functions as a Closed-End Fund.
Introduced to attract global fund managers, the VCC framework aligns Mauritius with international best practices and is comparable to Singapore’s VCC model. It allows operations to be consolidated under one entity, reducing administrative burdens while ensuring investor protection through ring-fencing and regulatory oversight. This strengthens Mauritius’ standing as a gateway for African and Asian investment flows.
In a VCC, each sub-fund or SPV has independent assets, liabilities, and governance structures, protecting investors from cross-contamination. VCCs also allow variable share capital — shares can be issued, redeemed, or repurchased based on Net Asset Value (except in closed-end funds). Tax efficiency is another advantage: VCCs and their sub-funds file separate financial statements, pay taxes individually, and may benefit from Mauritius’ network of Double Taxation Agreements if licensed as a Global Business.
For instance, imagine a Mauritius-based VCC named Global Growth VCC Ltd. hosting three sub-funds: Sub-Fund A, a collective investment scheme targeting African tech startups; Sub-Fund B, a closed-end fund focusing on renewable energy infrastructure; and Sub-Fund C, a feeder fund channeling capital into a master fund in Europe. Each has its own investment strategy and risk profile, shares administrative resources, yet remains legally and financially independent. If Sub-Fund B becomes insolvent, Sub-Funds A and C remain unaffected.
The Financial Services Commission (FSC) oversees VCCs, with registration and sub-fund creation applications submitted via the FSC One Platform, accompanied by constitutive documents, investment objectives, and risk disclosures. The FSC ensures compliance with the Securities Act and Collective Investment Schemes Regulations, and safeguards investors during restructurings or wind-ups.
Fund managers launching multi-strategy portfolios, family offices seeking asset segregation and tax efficiency, and institutional investors requiring bespoke fund structures are all well-positioned to benefit from Mauritius’ VCC framework. With its flexibility, efficiency, and investor protection, the VCC marks a new chapter in the evolution of Mauritius as a fund structuring destination.
2 Comments
Shivani Ramdin
The VCC framework seems like a smart evolution for Mauritius’ fund sector. The flexibility for fund managers and protection for investors is a winning combination.
ReplyJames Okeke
I appreciate the example of the Global Growth VCC — makes the concept much clearer. Looks like a great option for multi-strategy funds.
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