Closed Ended Fund (CEF)
Closed-ended fund structures for sophisticated investors in private equity, real estate, infrastructure, and other illiquid asset classes — offering flexibility, efficiency, and access to Mauritius's treaty network.
A Closed Ended Fund (CEF) is a fund structure with a fixed capital base that does not allow investors to redeem their interests on demand. Instead, the fund has a defined investment period and lifecycle, making it ideally suited to private equity, real estate, infrastructure, venture capital, and other strategies where underlying assets are illiquid or require a longer investment horizon. Mauritius offers a well-regarded regulatory framework for CEFs under the Securities Act 2005, supported by a deep pool of experienced fund administrators and fiduciary service providers.
Fund Structure
CEFs in Mauritius are typically structured as limited partnerships or open-ended companies with restricted redemption rights. The limited partnership structure is particularly popular for private equity and venture capital, mirroring the international GP/LP model.
Investment Period
A CEF typically has a defined investment period (commonly 3-5 years) during which capital is deployed, followed by a harvesting period during which investments are realised and proceeds distributed to investors. The total fund life is commonly 7-10 years.
Investor Eligibility
CEFs are restricted to sophisticated or professional investors. Minimum subscription thresholds apply, and the fund's offering document must clearly disclose the illiquid nature of the investment and the absence of redemption rights.
Distribution Waterfall
CEFs typically employ a distribution waterfall mechanism — returning capital to investors first, followed by a preferred return, and then carried interest to the fund manager. PrimeLuxe provides full distribution calculation and investor reporting services.
Tax Efficiency
A Mauritius-based CEF structured via a GBC benefits from no capital gains tax on asset disposals, access to the DTA network for withholding tax reductions, and the partial exemption regime on qualifying foreign-source income.
Administration
PrimeLuxe provides comprehensive CEF administration including capital account maintenance, capital call and distribution processing, investor KYC/AML onboarding, financial statement preparation, and FSC regulatory reporting.
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Our team will guide you through every step — from initial structuring advice through to incorporation, licensing, and ongoing administration.