Luxembourg, a hub for investment funds, offers a favorable environment for infrastructure investment funds. Luxembourg offers types of regulated and unregulated investment funds investment funds can launch. Here are the main steps to set up an infrastructure investment fund in Luxembourg.
Regulated Investment Funds in Luxembourg:
- SIF (Specialized Investment Funds)
- SICAR (Société d’Investissement à Capital risque)
- RAIF (Reserved Alternative Investment Funds)
Unregulated Investment Funds in Luxembourg:
- SOPARFI (Société de Participation Financière)
- Securitization vehicle
- SPF (Société de gestion de patrimoine familial)
Steps to Set Up an Infrastructure Investment Fund in Luxembourg:
- Choose a fund structure
- Register with CSSF (Commission de Surveillance du Secteur Financier)
- Appoint a depositary
- Prepare and file offering documents
- Obtain CSSF approval
- Launch and market the fund
- Ongoing compliance requirements
Choosing a Fund Structure: you can choose between a regulated or unregulated investment fund structure depending on the investment strategy and target market. A regulated fund offers more investor protection, but requires CSSF approval and ongoing compliance with regulations. An unregulated fund offers more flexibility, but less investor protection.
Registering with CSSF: you must register the management company of your future fund with CSSF and obtain approval before launching the infrastructure investment fund. The registration process involves filing an application with CSSF, providing information about the fund structure, investment strategy, and key personnel.
Appointing a Depositary: A depositary must be appointed to ensure the safety of the fund’s assets. The depositary is responsible for maintaining the fund’s accounting records, overseeing the fund’s operations, and ensuring compliance with regulations.
Preparing and Filing Offering Documents: The client must prepare and file offering documents with CSSF, including the fund’s prospectus, subscription agreement, and investment policy. The offering documents provide potential investors with information about the fund, including the investment strategy, risks, and fees.
Obtaining CSSF Approval: CSSF must review and approve the offering documents and fund structure before the infrastructure investment fund can be launched. The approval process may take several months.
Launching and Marketing the Fund: Once CSSF approval is obtained, the infrastructure investment fund can be launched and marketed to potential investors. The client must comply with ongoing reporting and disclosure requirements to maintain CSSF approval.
Luxembourg offers a favorable environment for infrastructure investment funds, with a choice of regulated or unregulated fund structures. The steps to set up an infrastructure investment fund include choosing a fund structure, registering with CSSF, appointing a depositary, preparing and filing offering documents, obtaining CSSF approval, launching, and ongoing compliance. Contact your Damalion experts now to setup your infrastructure investment fund in Luxembourg.
