Fund Vehicle Toolbox

Luxembourg offers a wide range of alternative investment vehicles, including corporate and partnership vehicle types. These may be established as unregulated, indirectly regulated or fully supervised fund vehicles.

When setting up an investment structure, and for a fund product to be successful, it is vital to take into account both investor and asset manager needs. Important fund factors include time to market, corporate governance, operational efficiency, costs and taxation.

More recently, we have also seen an increased focus on investor preferences and their tax attributes when setting up alternative investment funds. OECD Base Erosion Profit Shifting “BEPS” and EU anti-tax avoidance measures, in particular anti-hybrid mismatches rules, will increasingly affect returns on alternative fund products, unless they are structured appropriately. Moreover, how investors are taxed could have a material effect on a fund's after-tax returns.

Also important to setting up, distributing and operating investment funds in Luxembourg, are the regulatory aspects. Not only are the local regulations complex, but they need to be considered holistically in conjunction with regulations applicable in each target investment country.

PwC Luxembourg experts are dedicated to help you:

• understand the most important features of available investment vehicles and related regulations,
• understand the key aspects that drive the choice of a specific fund vehicle,
• get insights into investor preferences, and
• enable alternative investments fund managers optimally align their products to investors’ needs
  

We help you maximise the likelihood of successful fund raising, by setting up the most appropriate structures and meeting your investors’ needs as well as yours.