DBS Private Bank has launched a multi-family office that leverages the variable capital company (VCC) structure to meet the increasing demands of ultra-high-net-worth individuals looking to set up their family offices in Singapore.
Called the DBS Multi Family Office Foundry VCC, the platform will operate as an umbrella VCC with underlying sub-funds, DBS detailed in an announcement.
Clients must invest at least S$15m ($11.2m) in managed assets to qualify, it added.
The VCC is a corporate structure for investment funds that can be set up as a standalone or umbrella fund with two or more sub-funds, with each holding a portfolio of assets and liabilities segregated from the other sub-funds.
The ultra-high-net-worth families who come under this umbrella VCC structure will have various investment strategies they can choose from to customise their sub-fund.
As part of the DBS umbrella VCC, they can also choose to invest in any number of sub-funds.
The sub-funds will be managed by a team of discretionary portfolio managers from DBS, or the families can choose to have a family member or an investment adviser manage the funds.
“Our new offering has already attracted keen interest from global ultra-high-net-worth families and their advisers, who see tremendous value in leveraging the VCC as a unique wealth structuring solution.
“It is also an attractive option for some families who are not looking to immediately relocate to Singapore but would like to consolidate their assets here,” said Lee Woon Shiu, group head of wealth planning for family office and insurance solutions at DBS Bank.
The bank is now in talks with more than 20 clients across Asia.
