Pre-Setup Fund Advisory Services in Singapore
Introduction
Pre-setup fund advisory services ensure that fund managers, investment professionals, and institutional investors receive the necessary structure to make informed decisions before a fund’s formation and launch. The choices made during the pre-setup phase, such as the selection of the fund structure, regulatory pathway, domicile, investor strategy, and operational design, will have long-term consequences for the fund’s commercial viability, regulatory compliance, and investor appeal. The use of expert fund advisory support before these decisions are finalised greatly reduces the risk of costly revisions late in the procedure.
Our pre-setup fund advisory services in Singapore are provided by experienced practitioners with broad industry knowledge and expertise in fund structuring, regulatory advisory, alternative investment strategies, and strategic fund launch support. We provide the analytical skills, regulatory expertise, and unbiased outlook that fund managers need to shape a fund that is commercially and structurally viable and prepared for a successful launch. Each investment approach, investor group and regulatory setting we serve is unique.
Understanding Pre-Setup Fund Advisory in Singapore
In Singapore, pre-set-up fund advisory includes strategic, structural, regulatory and operational advice needed to plan and design a fund before the formal set-up process. It provides advice on the most suitable fund vehicle and domicile, outlines the relevant regulatory licensing or registration process for the fund manager, sets out the economic and governance terms for the fund, and establishes the operational infrastructure needed to support a well-managed investment fund from day one.
However, the Singaporean market is unique and pre-launch fund advisory support should reflect the specific regulatory, investor, tax and commercial considerations of each fund manager’s investment approach and target investors. The Singapore fund ecosystem is among the best and internationally recognised, and fund managers who qualify have access to a variety of fund vehicles and licensing routes, as well as incentive schemes. The right mix of structure, vehicle and approach that the fund manager can use to maximise the fund’s long-term success is determined by a well-planned, pre-set-up advisory engagement.
Pre-Setup Fund Advisory Services We Provide
- Fund Structuring & Vehicle Selection Advisory: We have a team of fund structuring advisory experts who offer a wide-ranging advisory service to help identify the most suitable fund vehicle, whether this be a Variable Capital Company, a limited partnership, a unit trust or any other vehicle, based upon the fund manager's investment strategy, investor needs and regulatory and tax goals.
- Fund Manager Licensing and Registration Advisory: We advise fund managers on the regulatory licensing or registration option that is suitable for their proposed activities based on the applicable regulatory framework, such as the CMS License, RFMC, VCFM and LFMC in Singapore, and assist each client in determining the best and most efficient regulatory path for the proposed fund management activities.
- Investor Strategy and Fund Economics Design: We build our pre-setup fund advisory services to design the fund's commercial terms, including management fees and carry structures, eligibility for investors, investment minimums, distribution policy, and the economic structures that will govern the relationship between the fund manager and investors.
- Fund Regulatory Advisory Services and Compliance Planning: We help clients understand the relevant regulatory requirements, ongoing compliance obligations, and governance standards that the fund manager must meet, and prepare a realistic, informed compliance plan before the commencement of fund establishment.
- Alternative Investment Fund Advisory: We advise on all aspects of investment funds, from the very start of structuring and establishing the fund's investment strategy through to the ongoing duty to manage and report on the fund's performance. We offer fund-specific advice on structure and regulatory requirements, by asset class and investment strategy.
- Strategic Fund Launch Support and Market Positioning: We are trusted fund advisors who provide strategic support for investor positioning, fund documentation strategy, service provider selection, and the sequencing of fund formation and marketing activities, ensuring a well-planned, commercially effective fund launch.
Why Clients Choose Our Pre-Setup Fund Advisory Services in Singapore
Specialist Fund Formation and Planning Expertise:
We have an extensive understanding of the fund regulatory and structural landscape in Singapore, along with hands-on experience assisting fund managers across various asset classes and investment strategies, underpinning each pre-setup advising engagement with current market knowledge and regulatory practice.
Independent & Objective Approach:
Our pre-setup fund advisory services in Singapore are 100% independent, offering structural and regulatory advice based on objective principles aligned solely with the fund manager’s business and long-term interests, and not influenced by product or service provider affiliations.
Detailed Knowledge of Regulatory Requirements:
The Singapore fund professional setup consultants are well-versed in the regulatory landscape, ensuring that every fund setup advisory engagement complies with relevant licensing requirements, regulatory frameworks, and evolving expectations from regulators and investors.
Senior Involvement:
Our senior team is experienced in leading every pre-setup fund advisory engagement from strategy review to fund launch readiness to ensure that the process is quality, deep, and accountable, covering all aspects of the fund formation and planning services we deliver.
When You Need Pre-Setup Fund Advisory Services
We assist fund managers and investment professionals in all kinds of scenarios for their investment fund setup in Singapore, such as:
- Preparing for a first fund investment and needing full fund formation and planning services to guide informed fund structure, regulatory and commercial decisions before fund formation.
- Evaluating fund structure for a new investment strategy, where expert fund structuring advisory consultants can be tasked to create a value-added assessment of the fund structuring options in Singapore and recommend the most appropriate structure.
- Identifying the most appropriate and effective regulatory pathway before entering a fund manager structure, and needing independent advice regarding the regulatory pathway through regulatory services from a fund manager.
- Establishing the economic conditions and investors' dealings with a fund will require expert fund set-up consultants to advise on the investment's fee structure, carry arrangement, and the commercial terms governing the investors' relationship with the investment.
- Need strategic fund launch support as they enter the Singapore fund management market and need to know the local regulatory landscape, structures and approach to the market.
- Second opinion on existing fund formation plan before implementation; trusted preset fund advisors to highlight potential structural, regulatory, and commercial issues that may have an impact on the fund's sustainability.
Our Approach to Pre-Setup Fund Advisory
Engagement Scoping and Objectives Review
First, we create a clear definition of the fund manager’s investment plan, target investor group, business goals and the specific questions or decisions to be answered by a pre-setup fund advisory engagement. This involves reviewing the proposed asset class focus, the size of the proposed fund, the investor base, the management team, and any previous experience or arrangements relevant to the fund’s formation and planning
This is where we spend significant time working with the client to ensure alignment on a few critical areas for the advisory engagement, including scope, deliverables, and key milestones. A comprehensive pre-setup review of all structural, regulatory, and commercial considerations, or a targeted advisory on a specific issue such as vehicle selection or the licensing pathway, facilitates a focused, efficient, and client-centric advisory process.
The prelaunch fund advisory support the fund manager receives should be directly relevant to the manager’s situation and objectives, without unnecessary complexity and should be appropriate to address all material considerations. This is a good place to begin substantive advisory work that follows throughout the process of forming and planning the fund across all dimensions.
Investment Strategy and Fund Concept Review
Before providing any structural or regulatory guidance, we thoroughly review the investment approach the fund manager is proposing, including the target asset class, geographic focus, investment stage, return profile, and liquidity expectations. The investment thesis needs to be well understood to offer informed pre-setup fund advisory services, since the type of fund, the vehicle, and the regulatory pathway should all depend on the particular features and needs of the investment thesis.
The competitive positioning of the proposed fund in the existing market environment is also evaluated, including an analysis of the structures and positioning of similar funds, as well as opportunities to differentiate the fund manager’s structure and business model. This market view gives the advisory recommendations a solid footing in the market’s and investors’ perceptions, helping make the fund as relevant and appealing to investors as possible and maximising its commercial appeal.
The investment strategy and fund concept review serves as the basis for all subsequent structural, regulatory, and operational advisory work. It provides for the inclusion of all recommendations as part of the pre-setup fund advisory engagement, to be directed by the fund’s specific commercial objectives and investment characteristics, rather than generic or templated advice that may not be appropriate to the specific fund manager.
Fund Structure and Vehicle Selection
With a good understanding of the investment approach and investment goals, we can provide guidance on selecting the most suitable fund vehicle and structuring the proposed fund. This involves comparing the various fund vehicles available in Singapore (such as Variable Capital Companies, limited partnerships, unit trusts, etc.) based on the fund’s investment strategy, investor base, tax objectives, and operational needs.
We offer in-depth alternative investment fund advisory on the structural implications of each vehicle option, including governance considerations, investor access, tax and regulatory considerations, operational considerations, and the optimal structure for the asset classes and investment activities presented. This analysis will ensure the fund manager can select a vehicle that is truly appropriate and meets the fund’s long-term commercial and operational goals.
The fund structure and vehicle selection recommendations are clearly documented, and the rationale for the recommended approach is clearly stated, supported by a balanced consideration of the alternatives. This documentation provides a sound, fact-tested, and independently developed foundation for the structural choices that will underlie the design, registration, and operation of the fund for its lifetime.
Regulatory Pathway and Licensing Advisory
We review the end manager’s eligibility and recommend the most suitable licensing or registration route for the fund management activities in Singapore. This encompasses a formal analysis of the relevant regulatory frameworks, including the CMS License, RFMC, VCFM, LFMC, and other options available, and an evaluation of which is most suitable for the fund manager’s proposed activities, intended investors, assets under management, and commercial goals.
Our fund regulatory advisory services provide the fund manager with a clear, practical understanding of the requirements and conditions of each regulatory pathway, such as capital requirements, fit and proper requirements, compliance requirements and continuous reporting requirements, before deciding to commit. This approach to regulatory planning is the most informative and will minimise the risk of unplanned compliance costs or operational limits after the fund has been launched.
If the fund manager has not received the necessary regulatory approval, we advise him on the applicable licensing or registration process and, if applicable, arrange the licensing engagement as part of the fund’s overall setup. This method of licensing and fund establishment can guarantee that the regulatory and structural timelines are properly aligned and that the fund manager is authorised to run the fund before the investment is opened.
Fund Economics, Governance, and Investor Terms Design
We advise on the economic terms and governance structure of the fund, such as management fee structures, performance fee/carried interest structures, preferred return/hurdle rate provisions, and governance rights and protections for investor segments. These terms have direct implications for the fund’s commercial appeal to investors and for the interests of the fund manager and investors.
We also provide advice on the governance of the fund, including the composition and function of any advisory committee or board, provisions for key persons, investment approval procedures, and arrangements for managing conflicts of interest, as expected by institutional investors. The quality of the fund’s governance terms is now more significant to sophisticated investors. It plays a crucial role in the pre-setup fund advisory process for any fund that wishes to attract institutional investor capital.
The economic and governance advisory work is based on the latest market practices for similar funds in the same asset class and investor segment, ensuring that the fund’s terms are commercially competitive and credible to prospective investors. This market-oriented viewpoint is one of the greatest benefits that professional fund setup consultants can provide during the pre-launch phase, as it helps fund managers avoid terms that could prove difficult to negotiate or that may not align with investor appetite.
Launch Readiness and Strategic Fund Launch Support
In the final phase of the pre-setup fund advisory engagement, we bring together all structural, regulatory, economic and operational advisory to provide the fund manager with a clear and actionable plan to proceed to fund formation and launch. The purpose of this assessment is to identify any outstanding items that need to be resolved before the fund’s formation and to create a roadmap for the fund’s formation and marketing.
We provide strategic fund launch support by guiding the selection and appointment of major service providers, such as fund administrators, custodians, auditors, and legal advisers, and in sequencing fund documentation and investor engagement activities. The sequence in which the fund formation steps are executed and when investors are approached plays an important role in achieving a successful, profitable fund entry.
We are on hand to offer ongoing advisory services from the pre-setup stage through formal launch and the establishment of the fund, ensuring that the structural and regulatory decisions reached at the advisory stage are implemented and that any issues that arise during the setup process are resolved in a timely and effective manner. We are an experienced, trusted pre-setup fund advisor and will be there with our clients throughout the process from concept to launch.
How We Approach Each Engagement
step 01
Engagement Scoping
We start by having a clear picture of the objective of the valuation, who will be dependent on the output, and the general environment in which the engagement will be. This involves establishing the standard of value to apply, the type of interest to be assessed and any special considerations that can impact the scope of work.
At this point, we collaborate closely with the client to agree on deliverables, timelines and the level of analysis that is needed. Regardless of whether the valuation is to be used in internal decision-making, transaction support, or a more formal reporting purpose, it is important to have early alignment to make the engagement efficient and purposeful.
Properly planned scoping phase enables us to tailor the engagement to the right level without introducing any unnecessary complexity, and ensures that all the factors are considered. This gives the analysis that follows a strong basis and helps to follow the same approach in a very clear and consistent manner.
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step 02
Business and Industry Analysis
We undertake an in-depth analysis of the business before using any valuation methodology to know how the business works and how it creates value. This involves an examination of the business model, source of revenue, cost base, customer base, positioning against the competitors and the experience and depth of the management team.
We also look at the strategic direction of the business, growth plans and opportunities, and operational constraints that can influence its future performance. This qualitative analysis is fundamental to the creation of a realistic and informed perspective of the business prior to the thorough financial analysis.
Simultaneously, we conduct industry and market research, including the analysis of the overall economic environment, trends in the sector, and similar transactions. It is this external view that assists in pegging the business valuation in the prevailing market conditions, and that conclusions are backed by reference points that can be observed.
step 03
Financial Analysis and Normalisation
We will conduct an in-depth analysis of the financial data of the company, such as past financial statements, management accounts, and future forecasts or business strategies. This would help us to evaluate the performance in the past, determine the trend underlying the performance, and determine the plausibility of the future.
Another important aspect of this step is the earnings normalisation, which entails the process of correcting non-recurring items, owner-specific expenses and any irregularities in accounting policy or presentation. Such changes are made to make sure that the financial performance is based on the underlying economics of the business on a consistent basis.
We also determine the quality and reliability of the financial information, question assumptions where necessary and make sure that all the adjustments are well justified and backed by clear explanations and evidence. Such rigorous methodology gives the conclusions on valuation that follow a solid financial basis.
step 04
Methodology: Choosing and Implementing
The valuation methodology selected is determined by the nature of the business, the use of the valuation, and the availability of market information. Various types of engagements and business nature might prefer different approaches and our valuation specialists in Australia are cautious in selecting the best approach in each scenario.
Some of the common methods are discounted cash flow analysis, earnings-based methodologies, and market benchmarking based on similar listed companies or transactions. Both methods provide an alternative understanding of value and their relative applicability is evaluated in the context of the engagement.
Practically, we tend to use several methodologies and compare the findings to come up with a well-grounded and balanced range of values. The reasons behind the methods chosen and the importance assigned to each are well explained to facilitate transparency and consistency in the conclusions.
step 05
Sensitivity Analysis and Concluded Value Range
The valuation conclusions are typically given as a range instead of a point estimate, indicating the uncertainty of forward-looking inputs and market assumptions. Such a method gives a more realistic value representation in various circumstances and enables more informed decision-making.
We take key assumptions such as revenue growth, profitability, and discount rates through structured sensitivity analysis to learn how the variation of these inputs can impact the valuation result. This aids in determining the most important value drivers and those assumptions that the conclusion is most sensitive to.
We allow clients and their advisers to know the variability of possible outcomes by providing a range with a comprehensive analysis. It is especially useful in the context of transactions and negotiations where knowledge of value limits can be used to make improved commercial decisions.
step 06
Reporting and Advisory Support
The end product is packaged to meet the target audience and purpose, be it internal stakeholders, external stakeholders or formal reporting needs. The report is designed in a manner that logically and accessibly presents the methodology, key assumptions, financial analysis, and the concluded value range.
We make sure that key value drivers, risks and sensitivities are shared in a manner that stakeholders can see not just the result but also the rationale. In Australia, our business valuation advisory is informed by the transparency, clarity, and practical relevance in all reporting.
In addition to the written report, we also offer continuous advisory services such as presentations to boards or management, answering of counterparty queries and help with further analysis as the transaction or decision-making process evolves. This continuity makes sure that clients are supported to the end.
Key Considerations in Pre-Setup Fund Advisory
- Fund Vehicle and Domicile Selection: One of the most important decisions in the pre-setup fund advisory process is selecting the fund vehicle and domicile, as these choices can have long-term structural, tax, regulatory, and investor consequences and can be difficult and expensive to change after the fund is created.
- Regulatory Pathway Planning A key element in any pre-launch fund advisory engagement in Singapore is the regulatory licensing or registration status of the fund manager, as well as which fund management activities are allowed and which fund vehicles are permitted.
- Governance, Economic Terms, and Investor Documentation: The design, economic terms, and investor documentation of the fund must be properly aligned with investors' expectations, which vary materially across institutional, family office, and high-net-worth investors.
- Tax Efficiency and Applicable Incentive Frameworks: Tax planning is a key consideration in the pre-setup stages of fund advisory, and the availability of tax incentives and treaty benefits in Singapore will depend on the fund vehicle, structure and investor profile, necessitating a holistic approach to fund advisory – both in terms of fund structure and tax – from the beginning.
- Operational Infrastructure and Service Provider Selection: The fund's operating infrastructure and service provider selection must be designed and set up before the fund's investment activities, which is part of the pre-setup advisory process.
- Fund Economics and Market Competitiveness: The fund fee, carry structure, and economic terms should be competitive with comparable funds in the same asset class and investor market to attract and retain the number and quality of investors necessary to launch and sustain the fund.
Pre-Setup Fund Advisory Requirements
Effectively engaging pre-setup fund advisory services requires the fund manager to be prepared to provide relevant information and to actively participate in the advisory process. The key requirements for a productive and well-informed pre-setup fund advisory engagement include:
Clarity of Investment Strategy:
The fund manager must be able to clearly articulate the proposed investment strategy, target asset class, geographic focus, and return profile, as this information underpins all structural, regulatory, and commercial advisory recommendations provided during the engagement.
Defined Target Investor Base:
A clear understanding of the intended investor base, including investor type, eligibility criteria, geographic location, and investment expectations, is essential to advising on the most appropriate fund structure, vehicle, and regulatory pathway for the proposed fund.
Fund Manager Regulatory Status or Licensing Plan:
The applicant must provide information about their current regulatory status as a fund manager or their intended licensing pathway in Singapore, as the applicable regulatory framework directly determines which fund vehicles and structures are available and appropriate.
Financial Resources and Operational Capacity:
Information about the fund manager’s available financial resources, operational capacity, and proposed service provider arrangements is required to assess the feasibility and readiness of the proposed fund and to provide well-grounded advice on fund economics and launch planning.
Engagement with the Advisory Process:
A productive pre-setup fund advisory engagement requires the fund manager’s active participation in discovery sessions, timely provision of required information, and responsiveness to advisory recommendations and requests for clarification throughout the process.
Clear Objectives and Decision Timeline:
The fund manager should have a defined set of objectives for the pre-setup advisory engagement and a realistic timeline for the fund formation decisions that need to be made, enabling the advisory work to be sequenced and prioritised effectively to meet the fund’s planned launch schedule.
Industries We Serve Across Singapore
The fund advisory services in Singapore that we provide are pre-set up and fit for a wide variety of fund managers and investment professionals in the alternative investment and fund management arena, spanning:
- Private Equity and Buyout Fund Managers: Private equity and buyout fund managers seeking fund structuring advice for their first or next fund in Singapore for closed-ended fund strategies.
- Venture Capital and Growth Equity Managers: Expert assistance with vehicle selection, VCFM licensing, and terms for investors for a Singapore-domiciled Fund that is in the process of setting up a Venture Capital or Growth Equity Fund.
- Hedge Fund and Absolute Return Managers: Managers of hedge funds and/or absolute return strategies that intend to structure their funds as open-ended funds in Singapore, seeking advice before structuring on vehicle selection, liquidity design, and the regulations governing their proposed investment activities.
- Real Estate and Infrastructure: Real estate fund managers and infrastructure investors for Singapore-based closed-ended funds who require fund formation and planning services related to the vehicle design, the terms of investors and the regulatory and tax implications of illiquid asset fund strategies.
- Family Offices and Private Wealth Managers: Family officers and private wealth management professionals who are considering a customised Singapore fund structure to manage private funds, looking to investment fund setup consultants who understand the various governance, tax and investor considerations that govern family-owned investment vehicles.
- Foreign Fund Managers Entering Singapore: Overseas fund managers and cross-border investment professionals looking to set up a presence in Singapore to launch a fund and require strategic fund launch support and complete pre-launch fund advisory services to navigate the Singapore funds regulatory environment and Singapore funds ecosystem effectively.
Illustrative Engagement Examples
Situation: The client was an established investment expert in Singapore who wanted to start their first Southeast Asian, mid-market private equity fund. The founding team was experienced in deal execution. Still, it lacked experience in fund formation and design before making a major commitment to the formal fund-formation process. It needed extensive financial planning and assistance to help them make critical decisions on vehicle selection, the licensing pathway, and the design of the economic model.
Action: We have performed a complete pre-setup fund advisory engagement, including selection of the fund vehicle (Singapore Variable Capital Company), the design of the RFMC framework (appropriate regulatory pathway for a proposed fund size and investor profile) and the design of the management fee and carried interest structure in a manner consistent with current market practice, as well as the preparation of a structured launch readiness plan covering service provider appointments, document sequencing and investor engagement strategy.
Outcome: The founding team received an in-depth, independently prepared pre-setup advisory report on all major structural, regulatory, and commercial decisions, along with a clear, actionable launch-readiness plan. This enabled the fund manager to move forward in a structured and effective manner through a formal process of establishing the fund, rather than encountering the numerous structural and regulatory mistakes that often plague first-time fund managers who go through the process without structured pre-launch fund advisory assistance.
Situation: The employer wanted to assess the viability of launching a fund in Singapore as part of a larger Asia-market entry plan for an overseas alternative investment fund. The management team had all the fund management experience in their own jurisdictions but needed expert advice and services during the pre-setup stage to gain a better understanding of the regulatory framework, available fund vehicles and licensing paths in Singapore, and considerations of structure and commerciality in the Singapore and regional investor markets.
Action: We have provided full alternative investment fund advisory services on the regulatory regime for fund managers based in Singapore, a comparative review of fund structures and their appropriateness for the proposed investment strategy and investor base and detailed guidance on the Singapore fund regulatory advisory services requirements applicable to the activities proposed by the manager. A fund concept paper and a sequencing plan for the fund launch were developed to facilitate the management team’s internal approval and investor engagement process.
Outcome: The management team was provided with a clear, well-structured, and independently authored advisory report that included all the important pre-setup decisions for their fund entering Singapore. The engagement enabled the fund manager to make informed and objective decisions to adopt a Singapore fund structure with confidence, and to undertake the essential advisory work to move forward in a timely fashion into the formal fund establishment, licensing and investor engagement process.
What Clients Receive
Each pre-set-up fund advisory engagement produces a set of outputs tailored to the fund manager’s investment goals, structural needs, and the level of the planning engagement. Our pre-setup fund advisory services in Singapore and their standard deliverables include:
- Rationale and balanced assessment of alternative fund vehicles and structures that are considered, including a fund structure and vehicle selection advisory report.
- A regulatory pathway assessment document, which identifies the most appropriate licensing or registration pathway offered by a regulator for a fund manager’s proposed activities and that gives a clear overview of the requirements and the pathway for licensing or registration.
- A Memorandum of terms and conditions for an investor's fund economics and preferred investor terms, including recommended management fee - and performance fee - structures, preferred return and hurdle mechanics, and governance provisions, benchmarked to current market practice.
- A fund concept paper, professionally presented and in a clear format, outlining the investment concept, structure, investment terms and target return profile of the fund for internal approval and/or preliminary investor engagement.
- A document with all outstanding structural, regulatory, operational, and documentation requirements that need to be fulfilled before the formal establishment of the fund and investors' onboarding.
- A Service Provider Selection Framework with advice on the selection criteria to be considered and the factors to be taken into account when appointing fund administrators, custodians, auditors, legal advisers and other important service providers.
- A plan for fund formation and sequencing of the fund launch, including the recommended sequence and timing of the key steps involved in the fund establishment process, from regulatory applications to the first investor close to the commencement of investment.
- Continuous support for the launching of the strategy, followed by trusted pre-setup fund advisors' advisory on any additional structural, regulatory and commercial issues that may arise during the fund manager's transition from pre-setup to formal fund formation and launch.
Frequently Asked Questions
Q1. What is pre-setup fund advisory, and why is it important?
In the context of fund manager and investment advisor services, pre-setup fund advisory involves structuring and advising investment managers and professionals before the fund is actually created. It is significant because decisions taken in the pre-setup phase can have an impact that is difficult, and even impossible, to reverse in the future on the design of the fund, its compliance obligations, the investment appeal to investors, and the efficiency of its operations. Working with trusted fund advisors before finalising these decisions greatly minimises the risk of structural mistakes, regulatory issues, or commercial errors that could negatively affect the fund’s long-term viability.
Q2. What decisions does pre-setup fund advisory help with?
Pre-setup fund advisory services encompass a wide variety of issues, such as the selection of the best fund vehicle and domicile, the regulatory licensing or registration pathway to be taken, the design of the economic terms and governance of a fund, the identification of the investor strategy and target market for an investment fund and the planning of arrangements for the operational infrastructure and service providers needed to support the running of an investment fund. All these dimensions are addressed in a structured, integrated consultation on investment fund setup.
Q3. How early in the fund planning process should pre-setup advisory be engaged?
The greatest value that pre-setup fund advisory can provide is for a fund at the outset of planning, before structure decisions or investor, service provider or regulatory commitments. Early involvement of professional fund setup consultants will ensure the fund design is based on a comprehensive, transparent review of available options, and the most suitable and efficient route to the fund launch is chosen from the beginning, rather than honed in an expensive revision process.
Q4. What fund vehicles are available in Singapore for investment funds?
Investors can invest in fund vehicles available in Singapore and suitable for different investment strategies, such as the Variable Capital Company, limited partnership, unit trust, and private company limited by shares. The structural, governance, tax, and regulatory features of each vehicle differ and can be more or less appropriate for various asset classes, investor types, and fund strategies. Our fund structuring advisors evaluate all of the options and recommend the fund to the fund manager based on the investment program and commercial goals
Q5. What regulatory licensing or registration does a fund manager in Singapore require?
The relevant regulation for a fund manager in Singapore will differ depending on the type of fund management operations the fund manager intends to perform, the categories of those investors to be served and the amount of assets under management. It offers three types of licenses to provide Capital Markets services: the Capital Markets Services License (CMS), the RFMC framework for smaller fund managers catering to qualified investors, the VCFM framework for venture capital fund managers, and the LFMC framework for managers serving retail investors. Our regulatory advisory services consult with clients on available avenues and recommend the most suitable and cost-effective regulatory approach for each client’s needs.
Q6. What are the key considerations in designing a fund's economic terms?
The main factors to consider when designing a fund’s economic terms are the management fee structure and calculation basis, the percentage of the carried interest and applicable hurdle rate, preferred return provisions, the sequencing of the returns to investors and the fund manager, and the clawback provisions to protect investors from over-distributions made to them in advance. These terms are pre-set up with our fund advisory service and compared with those currently in place in other funds with similar characteristics; optimal terms are recommended that suit the commercial interests of the fund manager and the investor.
Q7. How does pre-setup advisory differ for different asset classes?
The fundamental elements of structuring, regulatory approach and economic design apply to all asset classes. Still, there are significant differences in structuring needs, investor expectations, liquidity requirements, and governance expectations across asset classes. Our alternative investment fund advisory spans all areas of fund strategies. It offers asset class-specific advice on the structural and commercial factors most applicable to each type of fund, including private equity, venture capital, real estate, hedge funds, credit, and multi-asset investment funds.
Q8. Can pre-set-up fund advisory be provided for fund managers entering Singapore from overseas?
Yes. Our fund advisory services are often commissioned by foreign fund managers who wish to set up a fund management business and/or domicile it in Singapore for the first time. We offer our clients a full-service package for the launch of funds in Singapore, including, among others, regulatory considerations, available fund vehicles, tax considerations, and market dynamics, to help overseas managers navigate the local market and make informed decisions about their entry into the Singapore fund market.
Q9. What is the typical timeline for a pre-setup fund advisory engagement?
The timeline for a pre-setup fund advisory engagement will vary based on the complexity of the fund strategy, the number of structural and regulatory questions to be answered,d and the timeliness of the fund manager’s response to the information needed for fund analysis. A targeted engagement over a particular structural or regulatory issue may take a few weeks to complete. In contrast, a pre-set-up advisory on all aspects of fund formation and planning may take longer. We agree on a scope and timeline at the start of each client’s engagement.
Q10. How do I get started with pre-setup fund advisory services in Singapore?
To make an initial consultation appointment, please reach out to our trusted pre-setup fund advisors, who will discuss with you the structure and regulatory issues you are encountering, your proposed strategy, and the type of advisory engagement that best fits your needs. We will deliver a clear proposal and approach, setting you on a well-informed, practically sound path to engage our fund formation and planning services and to design and structure a well-planned, commercially viable fund structure in Singapore.
Discuss Your Pre-Setup Fund Advisory Requirement
If you are considering your first investment fund, assessing the optimal legal structure for a new fund strategy, bringing a fund to Singapore from abroad or improving a fund concept before taking the steps to form a legal entity, our seasoned pre-setup fund advisory team in Singapore is available to help. If you have a specific need, please reach out to us for detailed, actionable advice on structuring, designing, and establishing a well-designed, regulatory-compliant, and commercially viable fund in Singapore.
