Expertise in investment funds structures in Luxembourg

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Luxembourg is the leading investment fund centre in Europe, second only in the world to the United States. This is because Luxembourg has a highly tuned legal and regulatory framework which combines rigorous investor protection with an unequalled degree of flexibility in fund design; a flexibility that allows products to be tailored to the needs of a specific market or client group. The availability of a wide range of specialised service providers enables fund promoters to subcontract non-core activities and hence benefit from economies of scale. Luxembourg specialises in the administration and cross-border distribution of investment funds and has become the platform of choice for promoters wishing to market their investment funds worldwide.

Luxembourg Funds can be set up as regulated and unregulated vehicles. Among regulated vehicles funds targeting the wider public are distinguished from funds for a restricted group of investors under private placement. Regulatory oversight is performed by the CSSF, the financial sector supervisory authority.

Investment Funds

UCITS

Different kinds of fund structures in Luxembourg Fund law

Luxembourg offers a range of structures to enable undertakings for collective investment (UCI), which are subject to different levels of regulation. The choice of structure is generally driven by the investment policy and the distribution strategy of the fund.

There are two main categories of UCI:

undertakings for collective investment in transferable securities (UCITS), which comply with the European Directive on that subject;
alternative investment funds, which cover all other types of fund including hedge funds, real estate investment funds, and venture capital and private equity funds.

Three legal structures are available:

the common investment fund (Fonds commun de placement - FCP), which has no legal personality and which must be managed by a fund management company;
the investment company with variable capital (Société d’Investissement à Capital variable - SICAV), where the capital varies in response to subscriptions and redemptions made by investors;
the investment company with fixed capital (Société d’investissement à capital fixe - SICAF).

The SICAV and the SICAF may be self-managed or a fund management company may be appointed.

All these structures can be set up as stand alone funds, with single investment portfolios, or they can be structured as multiple compartment funds (also known as "umbrella funds") which create separate sub-funds (compartments) under the roof of a single legal entity. These sub-funds function as independent entities, each with its own investment policy, target distribution market and investor profile.

Each fund or sub-fund can, in turn, issue different classes of shares which vary, for instance, in the type and level of commissions. Thus enabling particular shares or units to be tailored to the needs of a specific market or clientele (institutional or private).

UCITS funds must be set up in accordance with the rules prescribed by the European Union and may only invest in certain investment classes. UCITS funds can be purchased by investors in any European country where they are authorised for sale, and in a number of countries in other regions or on other continents where they are permitted, such as certain Asian countries.

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Investment Management expertise available to institutional and private investors

UCITS

Different kinds of fund structures in Luxembourg Fund law

Investment Funds Platform

Hedge Funds

Alternative Investment Funds

Venture Capital & Private Equity

Corporate Finace & Fund Solutions

Securitisation Vehicle and Security Issuance

Art collection securitisation

Structured Products Issuance

Fund Services

Fund Domiciliation and Administration

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Step 1.

Is your request about one of the following services:

Step 2.

Step 3.

Size of the SPV / investment

Size of the Fund / SPV

Size of the SPV / issuance

Size of the SPV

Step 4.

Investor(s)

Step 5.

Submit your details

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Interested in Investment Funds? Talk to one of our Experts today

Investment Management expertise available to institutional and private investors

UCITS

Different kinds of fund structures in Luxembourg Fund law

Investment Funds Platform

Hedge Funds

Alternative Investment Funds

Venture Capital & Private Equity

Corporate Finace & Fund Solutions

Securitisation Vehicle and Security Issuance

Art collection securitisation

Structured Products Issuance

Fund Services

Fund Domiciliation and Administration

Contact Us

Step 1.

Is your request about one of the following services:

Step 2.

Step 3.

Size of the SPV / investment

Size of the Fund / SPV

Size of the SPV / issuance

Size of the SPV

Step 4.

Investor(s)

Step 5.

Submit your details

Interested in Investment Funds?
Talk to one of our Experts today