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Can S13O/OA/U SFO funds hold investments in operating businesses of the beneficial owner or his family?

Updated by MAS

Yes, S13O/OA/U SFO funds may hold investments in operating businesses of the family, and such investments are not subject to any holding limits. For the purpose of assessing various conditions, the following apply:

  • Investments (whether in the form of equity, debt or other financing arrangements) in operating businesses of the family will not count towards meeting the minimum AUM in DI condition. 
  • However, such investments will count towards all other relevant conditions (e.g. the minimum annual business spending and the Capital Deployment Requirement), provided that the investments qualify as DIs. 

This information is sourced from MAS.

Topics:

Schemes for Single Family OfficesAssets Under Management in Designated Investments (AUM in DI)

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