What are SPACs? The Special Purpose Acquisition Company (SPAC) is a special purpose entity, established by investors, that raises money through an initial public offering (IPO) in order to merge with or acquire another business. The ultimate goal is: 1. to raise sufficient funds to acquire the target company, and 2. to list the target…
Establishing a real estate fund or company? There are different real estate fund types and companies in Luxembourg. Depending on the needs of investors and promoters, you can choose the most suitable fund type: SOPARFI: (Financial holding company or sociéte de participations financières). Due to its flexible financing policy, its structural benefits, its lack…
Why Luxembourg? Luxembourg offers a variety of solutions to establish private equity funds and companies. This flexibility has made Luxembourg a globally leading domicile for private equity funds, the second largest investment fund centre in the world after the United States and the largest fund domicile in Europe with currently almost EUR 5 trillion of…
What is a fund distribution platform? There are a variety of fund distribution platforms available and their number is constantly increasing. Banks were traditionally the first contact point for retail investors and offer their own funds to their customers. This is changing in recent years, as retail investors are having direct access to fund platforms.…
What is a SOPARFI? A SOciéte de PARticipations FInancières (or short: SOPARFI) is a financial holding company in Luxembourg. The corporate purpose of the SOPARFI is to hold and manage financial participations in other undertakings. The SOPARFI can be established in various legal forms, depending on the needs of the investors, the management of the…
What is an investment fund manager in Luxembourg? Investment Fund Managers in Luxembourg (IFMs or Gestionnaires de fonds d’investissement) refers to UCITS management companies, other management companies, Luxembourg branches of IFMs, self-managed investment companies, authorised Alternative Investment Fund Managers (AIFMs) and internally managed Alternative Investment Funds (AIFs). Why set up a IFM in Luxembourg? Luxembourg…
What are Blockchain and Crypto fund? Blockchain funds provide investors with exposure to companies that have business operations in blockchain technology. Crypto funds give investors the ability to invest in a more flexible manner in various cryptocurrencies, such as Bitcoin, Ethereum and Ripple. Investment managers with these strategies provide their investors with a portfolio of blockchain companies or…
What are actively managed certificates? Actively managed certificates (AMC) are debt instruments issued by an investment vehicle as a structured product giving investors exposure to a portfolio of underlying assets, such as liquid securities, bonds, funds, shares, derivatives or currencies. What are the benefits of issuing an AMC? The benefits of issuing an AMC is…
What is a venture capital fund? Venture capital funds (VC funds) are investment vehicles focusing on investments into startups and small- to medium-sized enterprises (SMEs) that are not publicly traded and show a strong growth potential. VC funds are active in raising capital to directly invest into these privately held SMEs. Why set up…
What is a SICAV? A SICAV (société d’investissement à capital variable) is an investment company that has a variable share capital. It is a legal form that can be chosen in Luxembourg, under different legal fund regimes. The SICAV was introduced in 1983 in Luxembourg and allowed to establish an investment company with a capital that may…