British Virgin Islands investment funds - Summer 2026 update

BVI Investment Funds: Q1 2026 Statistical Update

The British Virgin Islands (“BVI”) investment funds industry continued to demonstrate its resilience and attractiveness during the first quarter of 2026, with strong levels of regulatory activity, continued growth across several fund products and sustained interest in the jurisdiction’s approved investment management regime.

The latest statistics published by the BVI Financial Services Commission (“FSC”) reinforce the BVI’s position as one of the world’s leading offshore investment funds jurisdictions, offering a diverse range of fund structures to meet the needs of emerging managers, institutional sponsors and private capital.

Strong growth in Approved Investment Managers

The Approved Manager regime continues to be one of the BVI’s most successful regulatory offerings.

During Q1 2026, the FSC approved 57 new Approved Investment Managers, following 49 approvals in Q4 2025. Although this represents a decrease compared to the exceptional 74 approvals recorded in Q1 2025, the figures demonstrate continued demand for the regime.

As of 31 March 2026, there were 1,337 Approved Investment Managers recognised by the FSC.

The continued popularity of the Approved Manager regime reflects its approval process and flexibility.

Investment funds sector

The BVI maintained a robust investment funds sector comprising 2,242 regulated investment funds as at 31 March 2026, including 160 regulated Segregated Portfolio Companies.

Despite global economic uncertainty, the total number of active funds has remained remarkably consistent over recent quarters, demonstrating the resilience of the jurisdiction and the continued confidence of fund sponsors and investors.

Professional funds as market leaders

Professional Funds remain the cornerstone of the BVI investment funds industry.

At the end of Q1 2026, there were 858 active Professional Funds, representing the largest category of regulated funds in the jurisdiction. Over the past two years, Professional Funds have remained consistently stable, fluctuating within a narrow range of approximately 850 to 866 funds.

This sustained level of activity reflects the continued popularity of the Professional Fund product amongst sophisticated investors and institutional managers.

Continued Growth in Approved and Private Investment Funds

Two of the BVI’s more recently introduced fund products continue to perform particularly well.

The number of Approved Funds increased from 339 active funds in Q1 2024 to 468 by Q1 2026, representing growth of approximately 38% over the two-year period. This continued expansion highlights the market’s appreciation of the Approved Fund regime.

Similarly, Private Investment Funds (PIFs) have continued their upward trajectory, increasing from 370 active funds in Q1 2024 to 447 active funds as of 31 March 2026. Since their introduction, PIFs have become an increasingly popular structure for private equity, venture capital, real estate and other closed-ended investment strategies.

Conversely, traditional Private Funds have experienced a gradual reduction in numbers, suggesting an ongoing evolution of the market as managers increasingly utilise the more modern Approved Fund and Private Investment Fund regimes.

New fund launches

The FSC registered 43 new investment funds during Q1 2026, comprising:

• 12 Professional Funds;
• 17 Approved Funds;
• 8 Incubator Funds;
• 3 Private Funds; and
• 3 Private Investment Funds.

While this represents a modest reduction compared with previous quarters, the continued breadth of new registrations across multiple fund products demonstrates the flexibility of the BVI legislative framework in supporting managers at every stage of the fund lifecycle-from first-time emerging managers through to established institutional sponsors.

Segregated Portfolio Companies

The BVI remains one of the leading jurisdictions for Segregated Portfolio Companies (“SPCs”), which continue to provide an efficient mechanism for managers wishing to segregate assets and liabilities between portfolios.

As at 31 March 2026, the FSC granted 395 SPC certificates in total, including:

• 253 Approved Funds;
• 94 Professional Funds;
• 25 Private Mutual Funds;
• 22 Private Investment Funds; and
• 1 Incubator Fund.

The continued use of SPC structures demonstrates the flexibility of the BVI corporate framework for sophisticated investment products.

Virtual assets sector

The BVI’s digital assets regulatory framework continues to mature.

During Q1 2026, the FSC approved three new Virtual Asset Service Provider (“VASP”) licences, bringing the total number of licensed VASPs to 24. In addition, 12 Authorised Representatives were approved during the quarter, resulting in a total of 13 authorised representatives operating under the Virtual Assets Service Providers Act, 2022.

These figures demonstrate the continued growth of the BVI’s digital assets sector and reinforce the jurisdiction’s commitment to providing a regulatory environment for virtual asset businesses.

Looking ahead

The Q1 2026 statistics demonstrate that the BVI continues to offer a stable, sophisticated and commercially attractive jurisdiction for investment funds and investment managers.

Professional Funds remain the dominant fund product, while the sustained growth of Approved Funds and Private Investment Funds illustrates the market’s confidence in the BVI’s legislative and regulatory framework. Coupled with the ongoing success of the Approved Manager regime and the continued development of the virtual assets sector, the statistics provide further evidence of the jurisdiction’s ability to evolve in line with global market demand.