Panama Private Investment Fund (PIF)

Panama’s securities regulator, the Superintendencia del Mercado de Valores (SMV), distinguishes public registered investment companies from private investment funds, which are not offered to the public. Two common forms are generally described: a fund limited to 20 investors (often called PIF-20), typically made up of a pre-existing group such as a family or company, which is generally exempt from SMV registration and notification; and a fund limited to 50 investors (PIF-50), which is not registered but must notify the SMV before starting operations and is commonly expected to appoint licensed service providers and maintain audited accounts.

The vehicle is usually a Panamanian corporation (sociedad anónima), and the lighter regime suits family groups and small managed pools, particularly those with Latin American investors. Managers still need AML/KYC procedures under Panamanian law, and FATCA and CRS obligations apply.

The abbreviation PIF is also used for the Panamanian private interest foundation, a different wealth-planning vehicle. Requirements for private funds are set by SMV rules that change over time; check current requirements with Panamanian counsel.