For investors and family offices operating internationally, managing risk while keeping structures simple is a challenge. The British Virgin Islands (BVI) offers a well-established solution: segregated portfolio companies (SPCs).
An SPC is a single company that can be divided into multiple legally protected portfolios, each of which can hold its own investments, contracts and liabilities separately.
What makes the BVI SPC particularly attractive is that this separation is set out in law rather than based solely on internal accounting, contractual arrangements or constitutional documents.
What does “unregulated” mean in practice
Many people associate SPCs with regulated entities such as insurance companies or investment funds. While those remain common uses, BVI law also allows SPCs to be used for non-regulated private structures.
An unregulated SPC does not mean that the company is unstructured or unprotected. Rather, it simply means the company is not operating as a regulated business in the BVI. This allows family offices, private investors and business owners to use the SPC framework without the cost and complexity of a regulated fund or insurance vehicle.
What SPCs can be used for
Under the current framework, unregulated SPCs may be used for a wide range of practical purposes, including:
- holding separate investment strategies or asset pools for a family office or high net worth persons, including institutional investors;
- structuring joint ventures where each project or partner exposure needs to be ring-fenced;
- owning high-value assets such as real estate, yachts, aircraft or private equity investments;
- running multiple businesses or types of business; and
- supporting private investment or issuance structures where risk separation is important.
Essentially, each segregated portfolio can be treated as its own “risk bucket,” while still sitting inside one overarching company.
Why more investors and family offices are using BVI SPCs
The main advantage is risk containment. If one portfolio runs into problems, creditors generally cannot access the assets of another portfolio. This makes SPCs especially appealing for families and investors who want to separate:
- core wealth from higher-risk investments;
- different branches of a family or investor group;
- unrelated business ventures; or
- investments in different countries or industries.
At the same time, using one SPC instead of many separate companies can reduce administrative burden, governance complexity and costs. Additionally, cash flows and returns can be managed portfolio by portfolio, and profits from one investment pool can be distributed without being affected by the performance of other portfolios.
Governance
BVI law requires directors to actively maintain separation between portfolios. Assets must be clearly identified, liabilities properly allocated and records kept in respect of each segregated portfolio. For family offices and private investors, this means the legal protections are backed by practical operational rules, not just theory.
Although SPCs are a powerful structuring tool, they are not a substitute for regulatory or tax analysis in other jurisdictions. Local laws may still apply depending on where investors, assets or activities are located. In general, SPCs work best when used as part of a broader, well-advised international structure.
Conclusion
Benefits abound for investors and family offices seeking a clear, legally robust way to organise assets and manage risk. Unregulated BVI SPCs offer statutory separation, flexibility and efficiency within a globally recognised corporate framework, making them a compelling option for sophisticated private capital structures.
Christopher Simpson, the author of this guide, invites you to contact him directly if you have questions or need help forming a BVI SPC at [email protected] or +1 284-393-5800.