Glossary · Fund Structures
BVI Approved Fund
A BVI approved fund is a small, lightly regulated open-ended fund for up to 20 investors with a cap on assets, suited to friends-and-family and small managed vehicles.
Introduced alongside the incubator fund under the BVI’s 2015 Incubator and Approved Funds Regulations, the approved fund is generally limited to 20 investors and total assets of US$100 million. Unlike the incubator fund, it has no minimum investment and no time limit, so it suits family and small institutional vehicles that do not expect to grow beyond those limits.
An approved fund must be approved by the BVI Financial Services Commission before operating and is generally required to appoint an administrator, along with an authorized representative in the BVI. It must maintain AML/CFT procedures, provide investor disclosures, and file annual financial statements with the regulator. If it expects to exceed the investor or asset limits, it must convert to a private fund or professional fund.
Because the administrator requirement applies from launch, approved funds typically operate with a full NAV cycle, investor register and reconciliations from day one. Limits and functionary rules are subject to change; check current requirements with BVI counsel before launch.
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