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Private Equity Fund

Luxembourg is home to thousands of private equity vehicle and investment funds that invest in the economy, people and private equity deals around the world in different sectors of the industry, such as finance, infrastructure, IT, pharmaceutical, hospitality, asset management and the digital economy.

Investors, fund promoters, private equity firms, General Partners, managers and family offices that choose Luxembourg as a base for their private equity investments can select from a variety of different structures suited to their needs.

Among which are like SOPARFIs, SPFs, for unregulated corporate vehicles, SICAR, SIF & RAIF for regulated investment funds and Special Limited Partnerships which is particularly well-suited for the following Private Equity strategies.

Private Equity strategies:

 

  • Venture Capital: This strategy focuses on investments in start-ups and early-stage companies.
  • Growth Capital: This type of strategy is related to mature companies with a track record and established business model. These companies are typically looking for capital to invest in major operations (restructuring, acquisitions, reach new markets)
  • Private Equity Real Estate: It emphasises in investing in the risky part of the capital structure of developments and real estate projects.
  • Leverage Buyout: This results from the acquisition of another company through a significant amount of capital.
  • Distressed: This strategy focuses on companies needing to restructure or in a bad financial/operational situation
  • Fund of PE funds: It especially invests in funds specialised in private equity.
  • Fund of Fintech: It specialises in investing in companies with a focus on innovation

Key advantages of the SLP:

 

The use of the Special Limited Partnership is particularly advantageous thanks to its flexible legal and tax environment, with key benefits for private equity include:
  • No minimum capital
  • Unregulated up to 500 000 000 Eur (for close-ended fund assuming that there is no leverage)
  • Investors can subscribe by contribution in kind into the fund
  • Commitment and Drawn down
  • Unlimited number of investors or capital account
  • An external auditor is not mandatory
  • Vehicles can be listed on the Luxembourg Stock Exchange or on any overseas stock exchange
  • Capital premium may be used
  • There is no specific debt/equity ratio
  • Carried interest and tracking shares available
  • Full tax transparency – no withholding tax upon distribution of the dividends or profit
Private equity fund strategy flow chart

Get in touch with our Fund team to
discuss your investment fund project


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