Bourse de Luxembourg, Luxembourg

Our assistance in the creation and management of the financial vehicle adapted to your needs covers a large range of structures and companies.

Financial holding company (SOPARFI)

A financial holding company (SOPARFI – société de participation financière) is the most used unregulated investment vehicle. The SOPARFI is not a defined legal or tax concept but refers to a company the corporate purpose of which is to carry on holding and financial activities under the ordinary tax regime (the so-called “Participation Exemption”).

Specialised Investment Fund (SIF)

A Specialised Investment Fund (SIF) is designed as a more lightly regulated investment vehicle which offers an operationally flexible and fiscally efficient multipurpose investment tool for international, institutional and qualified investors (the same definition as for SICARs,): eligible assets might include, in addition to traditional securities or money market instruments, real-estate, hedge funds, private equity or tangible or intangible assets (debt, art, antiques, wine, jewellery, IP or sporting rights etc.).

Reserved alternative investment fund (RAIF)

A Reserved Alternative Investment Fund (RAIF), governed by the recent law of July 23, 2016, adds a new powerful tool to the already rich offer of fund regimes Luxembourg offers to fund managers and investors. This new regime allows fund promoters and alternative investment fund managers to set up a new category of AIF mirroring the already successful tax and legal regimes of the Specialised Investment Funds (SIF) and Investment Companies in Risk Capital (SICAR), except that the RAIF shall not be subject to prior authorisation and direct supervision by the Commission de Surveillance du Secteur Financier (CSSF).

Our assistance in the creation and management of the financial vehicle adapted to your needs covers a large range of structures and companies.

Cour de justice européenne, Luxembourg

Investment company in risk capital (SICAR)

An investment company in risk capital (SICAR) shall be any company whose purpose is to invest in securities (risk capital) so as to secure a return for their investors commensurate with the risk which they take the securities of which are restricted to well-informed investors.

Cour de justice européenne, Luxembourg

Securitization company or securitization fund

The Luxembourg securitization undertakings are subject to the amended law dated 22 March 2004 on securitization. The securitization law defines securitization as the transaction by which a securitization undertaking acquires or assumes, directly or through another undertaking, risks relating to claims, other assets, or obligations assumed by third parties or inherent to all or part of the activities of third parties, and issues securities whose value or yield depends on such risks.

The securitization law expressly foresees the possibility to create securitization undertaking under the corporate form (which is considered from a Luxembourg tax perspective as a Luxembourg resident fully-taxable company) or under the form of an unincorporated (contractual) fund not subject to any income taxes.

The securitization law allows the creation of undertakings (whether as a securitization company or securitization fund) with multiple compartments (umbrella structures) where each compartment will correspond to separate assets and liabilities and where each compartment will be segregated from the other compartments of the same undertaking as regards investors’ and creditors’ rights, effectively “ring-fencing” each compartment. This “ring-fencing” will also apply in case of liquidation, as a compartment can be liquidated without affecting the other compartments.

MUDAM (Musée d’art moderne Grand-Duc Jean), Luxembourg
MUDAM (Musée d’art moderne Grand-Duc Jean), Luxembourg

Private wealth management company (SPF)

A private wealth management company (SPF – société de gestion de patrimoine familial) has been created with the objective of creating a favourable framework for the family wealth management by qualifying shareholders which are either individuals acting in the management of their private wealth, or patrimonial entities (e.g. trusts, private foundations) acting exclusively in the interest of private wealth of individuals or intermediaries holding shares in the SPF on a fiduciary basis or in a similar capacity, on behalf of qualifying shareholders.

The activity of the SPF is strictly limited to the acquisition, holding and disposal of financial assets.

MUDAM (Musée d’art moderne Grand-Duc Jean), Luxembourg