RF Fund incorporate VCC Fund for digital assets
Singapore’s Monetary Authority of Singapore (MAS) registered RF Fund Management, a subsidiary of RF International Holdings, has unveiled following approval of MAS status 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 on 26th May 2020 as an umbrella VCC. This incorporation paves the strategic milestone for RF Fund Management to steadily pursue their inaugural US$50 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 15th 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. “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,” said Eric Neo Say Wei, Group Chief Executive of RF International Holdings and Director of RF Transformation Fund VCC.
“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,” said Vyasa Arunachalam, Partner of Dentons Rodyk & Davidson LLP.
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.
“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,” said Louisa Yeo, Partner, Financial Services Tax of Ernst & Young Corporate Advisors Pte Ltd.
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 US$3 million on 18th April 2019 and was the third ICHX’s external shareholder after Singapore Exchange and Heliconia Capital, a unit of Temasek.
