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GIP Funds

Background

Under the Global Investor Programme (GIP), investors with strong entrepreneurial and managerial experience are eligible to apply for Permanent Residency (PR) in Singapore. Applicants for the GIP are also required to make the following investments:

Option A: Invest at least S$2.5 million in a new business entity or expansion of an existing business operation.

Option B: Invest at least S$2.5 million in a GIP fund.

Therefore, funds granted the GIP fund status would be eligible to raise capital from GIP applicants.

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Eligibility Criteria

1. Funds must be incorporated and based in Singapore.

2. Fund management companies must be incorporated and based in Singapore. They must also obtain the Capital Markets Services license or Exempt Fund Manager/Notified Fund Manager Companies status from the Monetary Authority of Singapore (MAS) for their proposed activities.

3. In addition, fund management companies and their key managers must demonstrate a good track record of private equity and/or venture capital fund management experience as well as the funds’ performance.

4. Fund management companies who are interested to start a GIP Fund must attend one of the compulsory briefing sessions (to inform interested fund managers on the requirements) prior to their application.

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Key Requirements

1. A GIP fund must have:

  1. a minimum fund size of S$30 million;
  2. a maximum fund size of S$150 million; and
  3. a minimum subscription amount of S$500,000.

2. A GIP fund must have at least 3 Board Members, of whom at least 2 are Singaporeans or Singapore Permanent Residents.

3. A GIP fund must have at least 3 Investment Committee Members, of whom:

  1. at least 2 members are Singaporeans or Singapore Permanent Residents, and
  2. in service full-time; and
  3. possess at least 5 years of relevant experience in the private equity and/or venture capital fund management.

4. A GIP fund must ensure that at least 1 member of its Board is not an Investment Committee member.

5. A GIP fund must raise capital from GIP applicants from at least 2 or more countries.

6. A GIP fund must invest at least 50% of its total funds raised in Singapore-based companies in sectors promoted by EDB and/or other economic agencies. Singapore-based companies refer to companies which are incorporated in Singapore and carry out its core activities in Singapore. These sectors could include:

  • Biomedical Science
  • Clean Energy
  • Electronics
  • Environment & Water
  • Information, Communications & Media
  • Nanotechnology
  • Robotics Intelligence Systems
  • Urban Solutions
  • Wellness/Aging/Healthcare
  • New-technology enabled industries and materials

7. A GIP fund must not invest more than 5% of its total funds in publicly listed companies.

8. Both the GIP fund and fund manager must submit audited reports, investment reports and fund performance reports to Contact Singapore annually or as requested otherwise, including verification based on the specific terms of reference stipulated by Contact Singapore. The audit should be conducted by an internationally reputable accounting firm. All related audit fees would be borne by the fund/fund manager.

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Application Process

1. Contact Singapore will be making refinements to the application and selection process of GIP Funds. These refinements include the introduction of an independent fund rating exercise as well as a review by an independent panel as part of a comprehensive shortlisting and evaluation process.

2. Funds which are approved will be issued a Letter of Offer with Contact Singapore’s stipulated conditions and listed on the Contact Singapore website with its summary rating report once the offer has been accepted.

3. Approved funds are also required to undergo a surveillance rating exercise to reaffirm its rating and ensure compliance one year after its initial approval.

4. Under this new framework, a non-refundable application fee is payable at the point of application and at the initiation of the surveillance rating exercise.

5. Interested fund managers who have attended the October 2011 compulsory briefing sessions and expressed interest to apply would be notified subsequently on the details on the application process, fees and documents for submission.

6. With the roll-out of these new refinements, please note that there will only be one phase of application for 2012.  Details on registering for the next briefing session will be updated here subsequently.

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