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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.


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 Registered Fund Management 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.


Key Requirements

1. A GIP fund must have a minimum fund size of S$30 million and a maximum fund size of S$150 million.

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 at least 2 members are Singaporeans or Singapore Permanent Residents, in service full-time and 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, with minimum 15% of GIP applicants coming from one or more secondary markets.

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:

a. Aerospace Engineering
b. Alternative Energy/ Clean Energy
c. Automotive
d. Chemicals
e. Consumer Business
f. Electronics
g. Energy
h. Engineering Services
i. Healthcare
j. Infocomm Products & Services 
k. Logistics & Supply Chain Management
l. Marine & Offshore Engineering
m. Media & Entertainment
n. Medical Technology
o. Nanotechnology
p. Natural Resources
q. Safety & Security 
r. Space
s. Shipping
t. Pharmaceuticals & Biotechnology
u. Precision Engineering
v. Professional Services
w. Arts Businesses
x. Sports Businesses
y. Financial Services 

7. A GIP fund may not invest in companies whose securities are listed on any securities exchange in any jurisdiction.

8. A GIP fund must deploy at least 70% of its committed capital for private equity investments by the 5th year of its approval.

9. Both the GIP fund and fund manager must submit annual audited financial statements, declarations and quarterly investment reports to Contact Singapore or as requested otherwise. The audit should be conducted by an internationally reputable accounting firm. All related audit fees would be borne by the fund/fund manager.


Application Process

1. Interested funds will be required to undergo an independent fund rating exercise as well as a review by an independent panel as part of the comprehensive evaluation and selection process.

2. Funds which are approved will be issued a Letter of Offer with stipulated terms and conditions. Approved funds are expected to be listed on the Contact Singapore website with its summary rating report.

3. Approved funds will also be required to undergo ongoing surveillance rating to reaffirm its rating and ensure compliance for the next 2 years after its initial approval.

4. A non-refundable application fee is payable at the point of application and at the initiation of the surveillance rating.

5. Interested funds should attend Contact Singapore’s compulsory briefing session prior to the start of the application and be informed on the details on the application process, fees and documents for submission.

6. The 2015 new GIP Funds application exercise will commence in January 2015. The GIP Funds application briefing, will be held on 28 November 2014.

7. The deadline to register your interest for the GIP Fund application briefing is on 20 November 2014 at 4pm.

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