CRYPTO FUNDS: CAN A LUXEMBOURG FUND INVEST IN CRYPTO AND OTHER VIRTUAL ASSETS? Over the last few years, virtual assets have taken numerous forms, have experienced exponential growth, and have generated a lot of interest from both professionals and investors. What is a virtual asset fund? Virtual asset funds are funds that are investing into…
Modernisation of the Luxembourg Securitisation Law Luxembourg is expecting to pass shortly the draft bill number 7825 (the “Draft Bill”), which will amend the Luxembourg law on securitisation dated 22 March 2004 (the “Securitisation Law”), giving this investment vehicle further advantages for investors and promoters. A highly successful framework Since 2004 Luxembourg has had the…
Raising capital from investors is already a difficult undertaking, but when deciding to choose the right fund vehicle to raise capital it often becomes complex, as the promoters have to consider many legal and tax implications, as well as choosing the right jurisdiction. In contrast to other financial centers, Luxembourg offers the full range of…
What is an alternative investment fund? An alternative investment fund (AIF) is typically a fund investing in an alternative asset class in the broadest sense, covering private equity funds, real estate funds, hedge funds, art funds or venture capital funds. The EU directive regulating this sector, the AIFMD has defined the term very broadly including…
What are Microfinance funds? Microfinance funds (MIF) are investment funds that invest directly or indirectly in the microfinance sector. Microfinance refers to financial services providing micro-loans to people in the developing countries, that are not considered bankable by larger banks, as they are not able to provide collateral for the micro-loans. Why set up…
What is SRI Investing? SRI funds are investment funds that have integrated environmental, social and governance factors (ESG) into their investment process. These funds are considered to invest into businesses or activities which are deemed to be environmentally friendly and/or have a positive impact for society. The term is broad, but this asset class has…
What are bonds? Bonds are debt instruments issued to finance projects or companies. It typically represents a fixed-income instrument representing a loan may be an investor to a borrower. The bonds is typically issued by an issuing SPV, the Issuer. What are the reasons for listing bonds? Listing a bond can have many reasons: (i.It…
What is an art fund? Art has established itself as an independent asset class. There are promoters around the world that offer different forms to invest into art. Some investment funds offer investments into art to make long-term investments in order to diversify from the development of the global equities market. Other investment structures securitize…
When launching a new issuance of securities, such as bonds, notes, sukuk or security tokens, the promoters regularly choose the Luxembourg securitisation vehicle (SV). The promoters of the SV can either: 1.Establish their own securitisation company or securitisation fund; or 2. Choose to rent a compartment of an existing securitisation platform. Having your own securitisation…
Luxembourg is one of the most established and trusted jurisdictions for wealth management and holding vehicles. The SOPARFI (Financial holding company or sociéte de participations financières) and the SPF (Family Wealth Management Company or société de patrimoine familiale) are well established solutions, that continue to be very popular. The Special Limited Partnership (SLP or SCSp)…