Open a SICAR in Luxembourg
Updated on Thursday 06th July 2017
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The investment company in risk capital (SICAR) in Luxembourg may be established under the regulations of the Law of 15 June 2004. Foreign investors interested in how to start an investment fund in Luxembourg as a SICAR structure should know that the vehicle can be used for private equity and venture capital investments.
Characteristics of SICAR in Luxembourg
The SICAR in Luxembourg is a type of vehicle which is used for fund raising and investments in risk-bearing capital. Those who are interested in how to start a fund as a SICAR may also list the company’s shares on the local stock exchange, but only if certain conditions are met.
Also, the SICAR vehicle can be set up as a fund with multiple compartments, following the regulations imposed by the local authorities in 2008, when new modern provisions were added to further improve the quality of investment activities carried out through this vehicle. This regulation allows investors to carry multiple investment strategies at the same time.
SICAR: types of investors in Luxembourg
The SICAR vehicle is addressed to several categories of investors, as mentioned below:
• high net worth individuals;
• institutional investors;
• other types of investors.
Under the regulations of the Law of 15 June 2004, the SICAR may issue shares for the investors who are considered qualified investors. A qualified investor refers to the following categories:
• professional investors;
• institutional investors.
Moreover, the directors of a SICAR in Luxembourg are required to have a high level of expertise in the field. The regulation is also available for the company’s managers.
Legal entities for SICAR in Luxembourg
Investors interested in starting a hedge fund in Luxembourg or a SICAR vehicle can benefit from the same regulations applicable to local businessmen. Foreign businessmen can set up one of the legal entities available under the local legislation, as there are no restrictions in this sense.
The SICAR may be set up under one of the following legal entities:
• public limited company;
• private limited company;
• partnership limited by shares;
• limited partnership;
• special limited partnership;
• cooperative company operating as a public limited company.
Foreign businessmen may address further questions on the SICAR vehicle to our team of affiliates in Luxembourg.