MAS Registered RF Fund Management Secured Inaugural VCC Incorporation Strategic Milestone
Singapore's Monetary Authority of Singapore (MAS) registered RF Fund Management, a subsidiary of RF International Holdings, has unveiled that the Accounting and Corporate Regulatory Authority (ACRA) has confirmed its RF Transformation Fund VCC has been incorporated under section 16(4) of the Variable Capital Companies (VCC) Act as an umbrella VCC.
The RF Transformation Fund VCC incorporation comes on the heels of the firm’s approval of MAS status, according to a press release.
This incorporation paves the strategic milestone for RF Fund Management to steadily pursue their inaugural USD50 million Private Equity Fund. With a strong focus on the Digital Economy, the umbrella VCC fund will support the enhancement of Singapore's value as an international fund management centre under the recently launched MAS and ACRA VCC framework on 15 January 2020.
RF Fund Management, one of the early adopter fund managers to use Singapore’s VCC structure, has diligently selected partners Dentons Rodyk & Davidson LLP, Intertrust Group, Ernst & Young Corporate Advisors Pte Ltd and Deloitte & Touche LLP in its strategic plans to use the VCC.
Eric Neo Say Wei, Group Chief Executive, RF International Holdings, and Director, RF Transformation Fund VCC, said: “We spent time understanding the services of many legal advisors, fund administrators, tax advisors and auditors before coming to a decision. We selected Dentons Rodyk & Davidson LLP, Intertrust Group, Ernst & Young Corporate Advisors Pte Ltd and Deloitte & Touche LLP for their attention to client needs and willingness to grow alongside RF Fund Management. We are pleased to partner with these leading global custodians that supports our advocacy with integrity in governance, compliance and that can help us navigate as one of the early adopter fund in the VCC programme.”
Vyasa Arunachalam, Partner, Dentons Rodyk & Davidson LLP, said: “Dentons Rodyk is delighted to be working with RF in their impending fund launch. Our experience combined with RF’s foothold and knowledge in the sector makes for a perfect synergistic match. We congratulate them on their impending fund launch.”
In addition, RF Fund Management’s RF Transformation Fund VCC allows it to strategically harness Singapore’s business friendly tax treatment for VCCs in pursuing tax incentives for funds under sections 13R and 13X of the Income Tax Act. These incentives will provide tax exemption on qualifying investment income as long as certain criteria are met.
Louisa Yeo, Partner, Financial Services Tax, Ernst & Young Corporate Advisors, said: “The launch of the VCC framework has been greatly welcomed by the fund management industry. We are excited to be working with RF Fund Management on their inaugural umbrella VCC fund launch. As their tax advisor, we will help them structure the umbrella VCC and its investments as well as obtain the necessary tax incentive schemes.”
Leading by example, RF Fund Management's parent company, RF International Holdings, has supported Singapore's digital startup ecosystem, beyond just money and capital. An early investor in iSTOX established and operated by ICHX Tech regulated by MAS, RF International Holdings strategically invested USd3 million on 18 April 2019 and was the third ICHX's external shareholder after Singapore Exchange and Heliconia Capital, a unit of Temasek.
Vincent Lin H., Group Executive Chairman, RF International Holdings, said: “We are involved in each stage of growth. From new acquisitions and market penetration, whether it be China, Japan, Singapore or other ASEAN nations, to advocacy and higher price realization, our unique ecosystem enables select SMEs and start-ups to get their ideas off the ground through investments, mentorship, and leveraging the digital economy. We invite all like-minded investors to join our RF Transformation Fund VCC in fuelling the growth of these select SMEs and start-ups.”