Labuan Private Fund

Labuan Private Funds are mutual funds whose securities are owned or held by not more than 50 investors where the first-time investment of each investor is not less than MYR250,000 or the equivalent in any other currency.

The number of investors of the Labuan Private Fund become unlimited if the first-time investment of each investor is not less than MYR500,000 or the equivalent in any other currency.

A Labuan Private Fund is normally used as a vehicle to raise fund from private investors to invest in a project or an investment portfolio. However, a Labuan Private Fund cannot be offered to the general public.

A Labuan Private Fund must prepare and submit its fund offering documents to the Labuan Financial Service Authority (LFSA) prior to the launching of the Labuan Private Fund. The fund offering documents should provide information such as investment strategies, financial projections, redemption policies and material changes. However, the fund manager of a Labuan Private Fund need not be licensed.

Labuan Private Fund supports the multi-class fund. The fund can work with multi-currency/asset class. In addition to that, there are no foreign exchange controls, no withholding tax and no capital gain tax making Labuan one of the preferred jurisdiction in setting up private funds.