How to Set up an investment Fund in Sweden

Setting up an investment fund in Stockholm presents a compelling opportunity for fund managers, entrepreneurs, and legal advisors seeking access to one of Europe’s most mature, transparent, and innovation-driven financial markets. In this extended guide, we dive deeper into Sweden’s fund market infrastructure, regulatory environment, and high-growth investment sectors while outlining the complete fund setup process from a legal and business standpoint.

Why Stockholm? A Convergence of Legal Security and Market Dynamism

Sweden consistently ranks as one of the world’s most competitive, transparent, and digitally advanced economies. For fund initiators, Stockholm offers:

• A robust legal framework transposed from EU directives
• Transparent and efficient regulatory oversight by the Swedish Financial Supervisory Authority (Finansinspektionen, or FI)
• High investor trust supported by a savings-friendly tax regime and advanced capital market infrastructure
• A vibrant ecosystem for private equity, venture capital, and ESG-driven investments

Sweden’s investor culture is shaped by strong household participation in equity markets via the investeringssparkonto (ISK), pension capital flows, and widespread use of digital investment platforms. Local Damalion-accredited experts facilitate the entire registration process, from legal structuring to licensing and service provider engagement, ensuring compliance and efficiency at every stage.

Market Overview: Sweden’s Investment Fund Landscape

As of Q1 2025, Sweden’s fund industry reported assets under management (AUM) of over SEK 7,753 billion (approx. USD 700 billion), according to Statistics Sweden. This figure includes both UCITS and AIF structures, with a diversified portfolio spread across equity, fixed income, balanced, hedge, and real asset funds.

• UCITS dominate the retail space
• AIFs (specialfonder) cater to institutional investors with tailored strategies
• Sweden’s fund laws are harmonized with UCITS IV, AIFMD, and PRIIPs
• Nasdaq Stockholm facilitates liquidity for listed funds, REITs, and AIF instruments

Legal Framework and Terminology

• UCITS-direktivet – EU UCITS Directive (Lag (2004:46) om värdepappersfonder)
• AIF-förvaltare – AIF Manager (regulated under Lag (2013:561))
• Specialfond – AIF structure for institutional investors
• Fondsbestämmelser – Fund rules submitted to FI
• Förvaltare av andelar – Unit registrar or nominee
• KID/KIID – Key Investor Information Document (UCITS)

Step-by-Step Process: Registering a Fund in Stockholm

Step 1: Choose the Legal Structure

Decide whether to structure your fund as a UCITS (retail investors) or AIF/specialfond (institutional/professional investors).

Step 2: Draft Core Documentation

Damalion-accredited experts prepare the following:

• Fondsbestämmelser (fund rules)
• Prospekt (prospectus)
• KIID (UCITS) or disclosures (AIF)
• Corporate governance documentation

Step 3: Engage Service Providers

Damalion-accredited experts help you to appoint a:

• Förvaringsinstitut (custodian)
• Administratör (administrator)
• Extern AIF-förvaltare if not licensed in Sweden

Step 4: Submit Application to Finansinspektionen

Applications to Finansinspektionen include all legal, financial, and compliance documents. Timelines:

• UCITS: 60–90 days
• AIF: longer if illiquid or complex

Step 5: Distribution and Listing

• UCITS: Passportable across EEA
• AIF: May be listed on Nasdaq Stockholm or distributed under NPPR
• ISK-compatible fund wrappers increase retail participation

High-Growth Investment Themes in Sweden

Technology and SaaS

Stockholm is Europe’s second-largest VC tech hub. Ideal for funds targeting fintech, medtech, SaaS, and AI.

Sustainable Industry & ESG

Sweden leads in green industrial transformation. Projects like Northvolt and H2 Green Steel attract major institutional capital.

Private Capital and Secondaries

Home to EQT, Altor, and Nordic Capital, Sweden enables global deployment in Private equity (PE), infra, and secondaries.

Real Assets and Listed Alternatives

Strong opportunities in income real estate, REITs, and green infrastructure.

SMEs and IPO Pipelines

Sweden dominates European SME IPOs, with ISK boosting local demand and liquidity.

Advantages for Foreign Fund Managers

• Fully EU-aligned legal system
• Transparent tax and compliance rules
• Digital onboarding, e-governance, and English-proficient ecosystem
• Established passporting process for EEA AIFMs

Stockholm combines legal reliability with market opportunity. From ESG to secondaries and IPO strategies, the Swedish fund market delivers access, scale, and investor trust. Damalion-accredited experts provide full support from formation to fund licensing, partnering you with local custodians, administrators, and regulatory advisors. Combined with Luxembourg investment vehicles, you may benefit from the best components to perform  your investments. Please contact your Damalion expert now.