BVI Private Fund

Under the BVI Securities and Investment Business Act (SIBA), a private fund is a mutual fund whose constitutional documents limit it to no more than 50 investors, or that makes invitations to subscribe only on a private basis. It must be recognized by the BVI Financial Services Commission before carrying on business. Unlike a professional fund, it is not restricted to professional investors by statute, although the offering documents usually set a meaningful minimum investment.

Following reforms in 2019 and 2020, private funds must appoint key functionaries — including a manager, an administrator, a custodian (unless an exemption is granted) and an auditor — and adopt a written valuation policy, with annual audited financial statements filed with the regulator. Closed-ended vehicles are covered separately by the BVI private investment fund regime introduced in 2020, which should not be confused with the open-ended private fund.

Operationally, private funds run a standard fund administration model: NAV calculation, investor onboarding with KYC and AML, FATCA and CRS reporting, and audit. Functionary requirements and exemptions change over time; check current requirements with BVI counsel.