Carey Olsen advises on conversion to PCC of Baring Vostok feeder fund

Posted: 27/09/2013

Carey Olsen has acted for Baring Vostok Investments Limited, a Guernsey-domiciled unregulated listed feeder fund, on its reorganisation and conversion into a protected cell company (PCC) now known as Baring Vostok Investments PCC Limited.

Following the reorganisation the company has expanded its shareholder base by raising in excess of $30 million from new and existing investors and broadened its investment objective by acquiring interests in additional existing Baring Vostok private equity funds and co-investment opportunities with future Baring Vostock funds.

Corporate partner Andrew Boyce led the team together with senior associate Tony Lane in advising on the transaction. Reorganising and converting the feeder fund into a PCC required detailed discussions with the Channel Islands Stock Exchange (CISX), Guernsey Financial Services Commission (GFSC) and the Guernsey Registry in order to co-ordinate the approval procedures of each of those bodies. The fund has maintained its listing on the CISX and is regulated by the GFSC as a registered closed-ended collective investment scheme.

Advocate Boyce said: "While the Guernsey innovation has been in existence for some considerable time the use of the PCC structure, which provides operational efficiencies and is designed to segregate assets for the protection of existing shareholders, in more mainstream fund structures, such as listed funds, is testament to the integrity of the concept and the underlying legislation. Although this is new structuring territory for Baring Vostok the success of the offer points towards investor confidence in their concept as well."

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