Luxembourg Funds Tweaks
Dear Friends
Luxembourg is in the process of boosting the attractiveness of its toolbox with a new bill of law that introduces the option of creating multiple compartments for alternative investment funds (AIFs) that are organised in the form of simple limited partnerships (SCS) or special limited partnerships (SLPs) that are not governed by any specific product laws (like SIFs, RAIFs etc).
The main salient features of the bill are as follows:
• AIFs must be managed by an authorized EU AIFM.
• Assets/liabilities are ringfenced.
• Any standalone compartment can be liquidated.
• Possible to hold cross-compartment units
• Separate reporting possible per compartment.
This bill is a very welcome addition to the toolbox as it allows the ability to reduce setup costs and enable managers to setup multiple compartments instead of multiple ad hoc separate funds for paralell funds.
It could have been even more impactful if it were extended to registered AIFMs managing sub-threshold AIFs.
Please reach out in case of questions or if you want to improve your setup !
#funds#assetmanagement#luxembourg
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