Labuan public and mutual funds are regulated investment vehicles intended for broader capital raising and must be managed by a licensed Labuan Fund Manager.

These structures are suitable for:

• Public or semi-public fund offerings

• Broader investor participation

• Institutional-grade fund platforms

• Multi-strategy fund structures

Fund vehicles may be established using:

• Labuan companies

• Unit trust structures

• Partnerships

• Protected Cell Companies (PCC)

Public and mutual funds generally involve higher governance, disclosure and reporting expectations compared to private funds.

A Labuan Fund Manager licence authorises the licensee to carry on fund management business from Labuan.

Permissible activities typically include:

• Managing portfolios of securities or assets on a discretionary basis

• Managing Labuan private funds, public funds and mutual funds

• Managing collective investment schemes

• Providing investment advisory in connection with managed funds

• Managing PCC fund platforms and multi-cell investment structures

This licence is relevant for:

• Asset managers

• Family offices with external investors

• Fund sponsors operating multiple strategies

• Investment managers establishing a regulated presence in Asia

A Labuan Protected Cell Company (PCC) is a single legal entity with multiple segregated “cells”, where each cell’s assets and liabilities are legally separated.

PCC structures are widely used for:

• Multi-strategy fund platforms
• Umbrella funds with different investor groups
• Co-investment structures
• Platform models hosting multiple sub-funds
• Efficient expansion without forming new companies for each fund

PCCs are commonly paired with licensed fund managers and are highly attractive for scalable fund platforms.

Labuan Limited Partnerships (LP) and Limited Liability Partnerships (LLP) are frequently used for private fund raising arrangements through contractual partnership agreements.

These are commonly structured with:

• A General Partner (GP) – responsible for management and decision-making
• One or more Limited Partners (LPs) – capital contributors with limited liability

This structure is commonly used for:

• Private equity and venture capital funds
• Deal-by-deal investment vehicles
• Club deals and co-investment arrangements
• Family investment structures

Partnerships are particularly attractive for their commercial flexibility and alignment with international fund practice.

STO and tokenised investment models are increasingly explored as alternative capital-raising mechanisms. These structures involve the issuance of digital tokens that represent economic rights similar to securities or investment interests.

Labuan does not issue a standalone “STO licence”. Instead, such projects must be assessed based on:

• The nature of the token

• The rights attached to the token

• Whether the activity falls within investment business, securities offering or platform activity

Securities Licence Consideration

Where a token resembles an investment product (e.g. profit participation, ownership, revenue rights), the structure may fall within the securities or investment business regulatory perimeter. In such cases, engagement with Labuan FSA for regulatory clarity is strongly advisable before proceeding.

STO projects should therefore be structured carefully, often using combinations of:

• Labuan companies

• Fund structures

• Licensed fund manager

• Appropriate governance and disclosures
  

For more information, refer to Digital Finance

Labuan supports the issuance of securities and sukuk under its capital markets framework.

Sukuk structures are commonly used for:

• Infrastructure and project financing

• Asset-backed financing

• Islamic investment offerings

• Cross-border capital raising into Islamic investor markets

These structures are particularly attractive to issuers targeting investors in Malaysia, the Middle East and other Islamic finance markets.

Fund Administration Services

In addition to structuring, Confiance Trust Labuan provides ongoing fund administration services for Labuan investment vehicles.

Fund administration typically supports:

• Investor onboarding and registry maintenance

• Subscription and redemption processing

• Capital account tracking and distribution processing

• NAV coordination and reporting support

• Financial reporting coordination

• Regulatory and statutory filing support

• Ongoing governance and operational consistency

This service is relevant for:

• Private funds

• Public and mutual funds

• PCC platforms

• Partnership investment vehicles

• Family office investment structures

For more information, refer to Fund Adminitrastion