Variable Capital Company (VCC) indicative structure
- May be internally managed (by BoD) or externally managed
- Invest through Portfolio Companies
- Redemption directly out of the assets of the AIF
- Passive role of investors
- Preferably used for open-ended funds as share capital varies automatically
COMPOSITION OF THE BOARD
- At least two executive directors (“four eye principle”)
- Non-Executives not required (in practice used to emphasize tax residency in Cyprus)
Limited Liability Partnership (LLP) indicative structure
No legal personality .
Tax transparent structure
General Partner represents the AIF towards third party
Limited Partners’ liability limited to their capital commitment
Typically granted some veto powers e.g. give consent for certain actions to pass.
Investments should be made via SPVs to secure applicable tax benefits