The Most Popular Luxembourg Investment Vehicles - Damalion - Independent consulting firm.

Luxembourg is working hard to establish its stellar reputation as an excellent destination of a wide range of investment funds. The Luxembourg Parliament continuously enhances its investment toolbox for investment managers, allowing them to strategically organize their investments while safeguarding investors best interests.

By being one of first countries in the EU to transfer AIFMD into local law, Luxembourg has further boosted its position as an ideal destination for alternative investment funds. As of the first quarter of 2021, Luxembourg is home to almost 400 management companies, 250 of which are authorized AIFMs and more than half of those offering third-party AIFM services. Additionally, there are more than 605 registered sub-threshold managers in the Grand-Duchy of Luxembourg.

Damalion provides you with a brief overview of well-known fund vehicles that can be incorporated in Luxembourg across major asset classes and investment strategies.

SICAV-SIF SCA SICAV-RAIF SCA SICAV-RAIF SCSp Unregulated SCSp

Form

Corporate partnership limited by shares in the form of an investment company with variable capital and subject to SIF law Corporate partnership limited by shares in the form of an investment company with variable capital and subject to SIF law Special limited partnership without legal personality functioning as an investment company with variable capital and subject to RAIF law Special limited partnership without a legal personality
Tax Treatment Non-tax transparent in nature but enjoys tax privileges with the exemption of annual subscription tax, which is 0.01% of its net asset value. Non-tax transparent in nature but enjoys tax privileges with the exemption of annual subscription tax, which is 0.01% of its net asset value. Tax transparent in nature but assessed with annual subscription tax, which is 0.01% of its net asset value
  • Completely tax transparent
  • No annual tax subscription but assessed to pay EUR 4,815
Transfer Tax No No No No
Possibility of Listing Yes Yes Yes, but complicated in nature N/A
Open or close-ended

May be open or close-ended

May be open or close-ended

May be open or close-ended May be open or close-ended
Regulating Authority
  • Under CSSF guidance, must be approved by and in compliance with the SIF.
  • Under AIFMD supervision for full scope SICAV-SIF SCA

Light supervision and adherence to full requirements under AIFMD

Light supervision and adherence to full requirements under AIFMD Not under any regulating authority but should follow AIFMD for full scope unregulated SCSp
Investor Restrictions
  • For well-informed investors only
  • Investors may be professional or institutional with minimum capital share of EUR 125,000
  • For well-informed investors only
  • Investors may be professional or institutional with minimum capital share of EUR 125,000
  • ·Not open for commercial retail market
  • For well-informed investors only
  • Investors may be professional or institutional with minimum capital share of EUR 125,000
  • Not open for commercial retail market
  • For well-informed investors only
  • Investors may be professional or institutional with minimum capital share of EUR 125,000
  • Not open for commercial retail market
Best Qualities
  • Available in umbrella structure
  • Popular structure to many investors
Highly flexible umbrella structure

No direct CSSF guidance

  • Tax and legal transparency
  • Highly flexible umbrella structure
  • No direct supervision by the CSSF
  • Tax and legal transparency
  • Highly flexible umbrella structure
  • No direct supervision by the CSSF
  • No diversification requirements
Worst Qualities
  • Extensive diversification requirements
  • Direct CSSF supervision means less flexible time to market

Extensive diversification requirements

Extensive diversification requirements

Absence of umbrella structure

Applications Commonly used to hold private equity, real estate, and infrastructure assets Commonly used to hold private equity, real estate, and infrastructure assets Commonly used to hold private equity, real estate, and infrastructure assets Commonly used to hold private equity, real estate, and infrastructure assets

Damalion is an independent consulting management company which articulates work alliances with accredited professionals. Damalion experts deploy an extensive expertise in the formation of investment funds in Luxembourg. We take pride in our excellence of merging excellence and intelligent exigence with a professional and highly responsive attitude to providing advice to our clientele. To discover the ideal investment vehicle for your needs, contact our Damalion experts today.

This information is not intended to be a substitute for specific individualized tax or legal advice. We suggest that you discuss your specific situation with a qualified tax or legal advisor.