A Variable Capital Company (VCC) enables Mauritius funds to carry out business through one or more sub-funds and special purpose vehicles, all housed within the same structure. A sub-fund of a VCC may elect to have separate legal personality from that of the VCC itself.

The VCC can comprise of both Collective Investment Schemes and Closed-End Funds. A sub-fund of a VCC can also act as a feeder fund or a master fund.

Some of the benefits of a VCC include ring-fencing of the assets and liabilities of each sub-fund or SPV, cost efficiency, streamlining management and operations in one entity comprising separate units, flexibility regarding the distribution and payment of dividend out of capital rather than profits.