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The Securities and Exchange Commission of Pakistan (SECP) has introduced the Angel Fund, a new category of Venture Capital Fund designed to invest primarily in unlisted securities and financial assets of early-stage startup companies.
The announcement came through a notification issued on Monday, amending the Private Fund Regulations, 2015. The Angel Fund will operate as a sub-category of Venture Capital Fund under a closed-end structure, excluding hedge funds from its scope.
According to SECP, an “Eligible Investor” for the Angel Fund includes individuals who earned at least Rs5 million in the previous financial year or hold net assets of at least Rs15 million, excluding personal residences. Such investors must also provide a declaration confirming their understanding of private fund investment risks. Qualified institutional buyers are also eligible.
The revised regulations further define categories such as “Financial Close,” which marks the stage when financing and investment arrangements are finalized, and funds are ready for deployment. Additionally, other fund types outlined include the “Fund of Funds,” which invests in units of other private funds, the “Hedge Fund,” which uses diverse trading strategies, the “Impact Fund,” which focuses on socially responsible investments, and the “Infrastructure Fund,” which supports projects in transportation, utilities, and energy.
By introducing the Angel Fund, SECP aims to open new avenues for financing early-stage companies, strengthen the startup ecosystem, and attract investors to Pakistan’s growing entrepreneurial landscape.
