Luxembourg today offers a platform of services and structuring opportunities to the private equity industry. Products include competitive structures for setting-up private equity and venture capital funds, such as the investment company in risk capital (SICAR) or the specialised investment fund (SIF), and structures for pan-European private equity and venture capital acquisitions. Luxembourg has thus emerged as a prime jurisdiction for the structuring of private equity acquisitions and financings.
Besides the SIF and the SICAR, Luxembourg has built up its market share in private equity and venture capital funds thanks to its non-regulated special purpose companies (such as the SOPARFI - financial participation company) which are used for private equity acquisitions and financings alike. A SOPARFI is typically used for holding and financing private equity and venture capital investments. It may thus equally serve as a special purpose vehicle, a joint venture vehicle or more rarely a private equity fund vehicle.
The RAIF structure allows private equity and venture capital fund initiators to set up Luxembourg-domiciled funds that are not subject to regulatory approval by the Luxembourg supervisory authority. This option permits the achievement of a significantly enhanced time-to-market for new fund launches.
Consult the brochure Luxembourg Private Equity Investment Vehicles and get an overview of the different structures available.