After closing one of Singapore’s first VCCs, Mike Sim reflects on why fund managers should be more transparent about shutdowns — and how the industry must rethink what it means to lead with integrity.
By Mike Sim, Fund Manager and Educator; Founder of the NGL Institute
Highlights
The Unspoken Realities of Fund Closures
In Asia’s booming fund ecosystem, we celebrate launches, capital raises, and quarterly outperformance. But there’s a glaring gap in our conversations: what happens when a fund ends — not because it failed, but because continuing would’ve compromised integrity.
A few years ago, I made the difficult but deliberate decision to wind down my Variable Capital Company (VCC) fund. I was among the first in Singapore to launch one under the Monetary Authority of Singapore’s new framework — and perhaps the first to voluntarily shut one down. On paper, it looked like a step back. In reality, it was a governance decision.
The structure we had designed no longer matched the evolving direction of the fund. Staying the course would have meant lowering operational standards I wasn’t willing to compromise on. So I closed it — quietly, responsibly, and without fanfare. It wasn’t glamorous. But it was right.
Why Governance Matters More Than Glamour
What surprised me wasn’t the complexity of the legal and administrative process — though that was substantial. What truly caught me off guard was the lack of support or precedent. Everyone in the industry knows how to celebrate a launch. No one teaches you how to exit with grace.
This experience exposed a deeper problem: most fund management education doesn’t prepare professionals for the real-world challenges of operating a fund. You either get theoretical high-level frameworks or dense regulatory memos. Neither helps you make judgment calls when compliance bottlenecks are costing you investors, or when the market shifts faster than your infrastructure can keep up.
There’s little conversation around how to staff a fund, work with custodians and lawyers, or even how to open a bank account without spending months in limbo. These are the operational realities — the ones that ultimately determine a fund’s sustainability.
From Pain Points to Purpose: Lessons Learned
During the shutdown of my VCC, I experienced a harsh truth: even a well-structured fund can falter due to execution friction. Despite good leads and a solid thesis, delays in compliance and onboarding sapped momentum. What looked solid on paper buckled under real-world pressure.
Rather than walk away quietly, I documented everything — the blind spots, oversights, and costly lessons no one had warned me about. I quickly realized these weren’t unique to me. They were systemic.
That reflection became the foundation of my current work: mentoring and training aspiring fund managers, mid-career professionals, and compliance officers. We don’t offer abstract theory. We unpack what actually happens behind the scenes — and how to make smarter, more resilient decisions under pressure.
Training the Next Generation of Fund Leaders
Many professionals I mentor are smart, driven, and experienced — but they lack a deep understanding of fund structures. They know how to talk performance. But ask about shareholder rights, redemption protocols, or audit cycles, and the answers get shaky.
That’s not a reflection of their capability — it’s a flaw in how we train talent in finance. Our industry prioritizes results over process. We glamorize scale but neglect structure.
If we want to build stronger, more resilient private markets in Asia, we must reframe how we see governance. It’s not a back-office function. It’s a leadership skill. And it’s time we treat it that way.
Final Thoughts: Redefining Success in Fund Management
There’s a reason most fund closures happen in silence — they don’t fit the traditional success narrative. But walking away for the right reasons is not failure. It’s leadership.
One of my proudest moments wasn’t launching a fund. It was mentoring someone who, after finally understanding fund mechanics, landed a career-defining role. That’s the kind of impact we should be aiming for — clarity over ego, purpose over polish.
Asia’s financial future will be shaped not just by the bold, but by the honest. If we want to train future-ready fund professionals, we need to start telling the full story — including the chapters about closure, complexity, and courage.
Editor’s Note:
This article, originally titled “Why More Fund Managers Should Talk About How Their Funds Ended”, was contributed by Mike Sim, Fund Manager and Educator. It appears as part of NewInAsia’s Leadership and Investment Strategies coverage, spotlighting bold perspectives from professionals shaping Asia’s business landscape.
Views expressed are the author’s own. To pitch your story or share a reflection on leadership, innovation, or governance in Asia’s business landscape, contact the NIA editorial team.
Highlights
Read the Chinese article here, or listen to the podcast here.
