Managing a Fund in Mauritius

Mauritius offers an attractive environment for investment funds, supported by an advanced regulatory structure managed by the Financial Services Commission (FSC). Central to this framework is a structured approach that integrates main laws with flexible regulations, guaranteeing responsiveness to market changes.

To function in Mauritius, investment funds need to register or obtain approval as either Collective Investment Schemes (CIS) or Closed-End Funds (CEF), while fund managers must seek authorization to manage the fund unless it is overseen by its board of directors. The variety of fund categories, such as Retail Schemes, Global Schemes, Expert Funds, Specialised CIS, and Professional CIS, offers various investment opportunities.

When contemplating the creation of a fund in Mauritius, fund managers can choose from several structures, with the Global Business Company (GBC) being the most popular option. In this setup, shares are usually released at a designated par value, with all existing shares possessing the same rights. The GBC may exist as a standalone entity or be incorporated within a multi-entity framework, such as a master-feeder arrangement. It is typically established with limited liability, restricting shareholders’ liability to their initial investment.

Through a corporate framework, a fund is able to offer various classes of shares, as long as this stipulation is specified in its charter. Various classes of shares provide the investment manager with the ability to present distinct terms to different categories of investors. For instance, different performance fee arrangements or limiting involvement in specific income categories, like new offerings.

An alternative is the structure of a limited partnership. A benefit of this structure is that investors are automatically grouped into their own ‘class’, which removes the necessity to establish multiple share classes to accommodate different offering terms, as would be needed in a company.