The Bahamas “SMART” Fund
A recognized legal structure in The Bahamas that issues or has equity interests the purpose or effect of which is the pooling of investor funds with the aim of spreading investment risks and achieving profits or gains from the acquisition, holding, management or disposal of investments. This type of fund must satisfy the parameters and requirements of a category, class, type of Investment Fund previously approved by the Securities Commission.
SMART Fund Templates
SMART Fund Template 001
An Investment Fund where the promoter is a financial institution and the investors in the Investment Fund are also customers of the financial institution and party to a Discretionary Management Agreement with the financial institution.
SMART Fund Template 002
An Investment Fund that has no more than 10 investors who hold equity interests in the Investment Fund who meet the criteria of an ‘Eligible Investor’ in a Professional Fund and the majority of whom have the power to appoint and remove the operators of the Investment Fund. The fund may be licensed and launched same day through an Unrestricted Fund Administrator or 72-hour response through the SCB.
SMART Fund Template 003
An Investment Fund that has no more than 15 investors holding equity interest in the Investment Fund, the majority of whom have the power to appoint or remove the operators of the Investment Fund.
SMART Fund Template 004
An Investment Fund with a maximum of 5 investors operating as a private investment company. May be used as a credible, licensed holding vehicle.
SMART Fund Template 005
An Investment Fund with a maximum of 5 investors holding equity interests and operating as a private investment structure for individuals/families. Each investor must be a person to whom a Professional Fund may be offered, permitting same day launch by a unrestricted fund administrator or 72-hour response through the Securities Commission of The Bahamas.
SMART Fund Template 006
A special purpose vehicle designed to hold the illiquid or “hard-to-value” assets of another Bahamas investment fund which offers a significantly lighter administrative and cost effective environment for the assets whilst respecting the ownership rights of the investors and creditors (if any) of the original fund.
SMART Fund Template 007
Also known as the Super Qualified Investment Fund, permits single investors but allows a maximum of 50 investors to have an equity interest in the fund. There is a minimum investment of US$500,000 and the administrative functions of the fund can be outsourced to any reputable person in a jurisdiction on an as needed basis.
All SMART funds are required to be licensed as an investment fund under the IFA and such funds can be licensed either by the Commission or an unrestricted investment fund administrator, provided that such entity is the administrator of the fund and provides the principal office of the fund.