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25 May 2016
Find the right Luxembourg Investment Vehicle
Luxembourg offers a large choice of investment vehicles or funds. For any type of investor or investment, there exist suitable Luxembourg vehicles.
In order to facilitate the choice, SEDLO LAW FIRM shows you which vehicles could come into play by taking into account 1) the nature of the investors, 2) the regulation (or not) of the vehicle, 3) the necessity of an AIFM, 4) the possibility to create segregated sub-funds/compartments, 5) the assets that are eligible for each vehicle, 6) risk-diversification requirements and 7) access to treaties against double taxation (“DTT”)*.
This guide takes into account the coming into force of the law on RAIFs which should be enacted soon.
Terms used in this guide to describe the vehicles are defined below.
UCITS : Undertakings for Collective Investment in Transferable Securities
Part II Funds : Funds governed by Part II of the Law of 2010 relating to undertaking for collective investments
SIFs : Specialised Investment Funds
RAIFs : Reserved Alternative Investment Funds
SICARs : Risk-Capital Investment Companies
SPVs : Special Purpose Vehicles
ELTIFs : European Long-Term Investment Funds
* This brief guide focuses on these seven questions that are most frequently asked when clients contemplate to set-up a Luxembourg vehicle. Of course, it may not be considered as legal advice and it does not purport to be detailed, conclusive and complete given that many other aspects must be taken into account on a case-by-case basis when determining the right Luxembourg vehicle.