Recently, attorneys Zhou Shuiqing and Ye Zhiwen of our firm, leveraging their expertise in the offshore fund sector, successfully assisted Xiao Xi Capital in establishing an Approved Fund in the British Virgin Islands (BVI) and simultaneously helped the firm obtain the status of an Approved Investment Manager in the BVI. This dual milestone marks a solid step forward for Xiao Xi Capital on its path toward international asset allocation and compliant operations.
As the world’s second-largest offshore fund center, the BVI continues to attract the attention of global asset managers with its flexible, efficient, and significantly cost-effective regulatory environment. Among these, Approved Funds are specifically tailored for managers seeking to establish long-term funds targeting a limited investor base (such as family offices or high-net-worth individuals), greatly simplifying the establishment and operational processes while maintaining compliance standards.
In this project, our firm’s legal team led the following core legal services throughout the process:
1. Structural Design and Planning: Based on Xiaoxi Capital’s business needs and investor structure, we designed the most suitable legal framework for the fund and its manager regarding fundraising, valuation, and investment exits;
2. Entity Formation and Document Drafting: We efficiently completed the formation of the BVI fund entity and the manager, and drafted, reviewed, and finalized the entire set of English-language legal documents, including the fund’s articles of association, prospectus, subscription agreement, investment advisory agreement, management agreement, and anti-money laundering manual;
3. Regulatory Compliance Applications: In accordance with the BVI Securities and Investment Business Act (Revised 2020), the BVI Mutual Fund Regulations (Revised 2020), and other relevant regulations, we successfully assisted Xiao Xi Capital’s BVI entity in passing the review by the BVI Financial Services Commission (FSC) and obtaining approval for its fund manager status and fund authorization.
This approved BVI fund manager status provides the fund manager with an extremely flexible regulatory framework, allowing the manager to efficiently manage investment portfolios while ensuring compliance. At the same time, the establishment of the approved fund provides Xiaoxi Capital with a compliant and efficient international platform for future business expansion. The implementation of the BVI fund structure will strongly support its global investment strategy, particularly by offering more credible compliance safeguards when dealing with institutional clients and emerging asset classes.
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As a professional legal service provider, King&Capital Law Firm has always been committed to providing domestic and international clients with one-stop legal services that span multiple jurisdictions and cover the entire investment lifecycle—from fundraising to investment, management, and exit. Moving forward, we will continue to leverage our precise understanding of the legal frameworks in major offshore jurisdictions such as the BVI and the Cayman Islands to help more Chinese capital expand into international markets.
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