Hedge Funds

Why Hedge Funds should consider Luxembourg

Hedge Funds can either pursue liquid or illiquid strategies. In this regard, Luxembourg proposes a vast variety of fund vehicles (UCITS, Part II Fund, SIF, RAIF, unregulated SCSp) that can be suitable for liquid or illiquid Hedge Funds depending on the type of assets to be traded or the type of investors that are targeted. Moreover, as illiquid Hedge Funds can hold very different types of assets, either real estate assets, debt instruments (bonds, performing and non-performing loans, claims), or other kind of real assets like vessels, aircrafts etc, structuring properly the holding of these assets can be challenging due to multiple requirements to be met from a legal, regulatory, operational or tax perspectives. 

Challenges

Selecting the appropriate Hedge Fund structure (UCITS versus AIF that can be either regulated or unregulated AIF with different legal forms like corporate, partnership, FCP).

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Effectively marketing and distributing your funds across Europe by understanding local regulations, investor preferences, and leveraging distribution networks.

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Non-EU Hedge Fund Managers like US managers can act as portfolio managers or advisors of a Luxembourg Hedge Fund under a delegation agreement subject to some requirements.

Properly structuring deals to optimise returns and manage risks through thorough due diligences, tax structuring, and financial planning.

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Setting up a Luxembourg Hedge Fund, either UCITS or AIF comes with some regulatory and tax compliance obligations.

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Who we are

PwC Luxembourg has a large team of experts either in audit, regulatory and tax that can advise and support the development of liquid or illiquid Hedge Funds managers in Luxembourg.

Contacts:

  • For Audit: Fanny Sergent, Audit Partner and Asset Management Assurance Leader and Valerie Tixier, Audit Partner and Asset Management Assurance Leader, PwC Luxembourg
  • For Regulatory: Xavier Balthazar, Advisory Partner, Asset Management, Regulatory & Compliance, PwC Luxembourg
  • For Tax: Sidonie Braud, Tax Partner and Luc Petit, Tax Partner, Clients & Markets Hedge Funds Leader, PwC Luxembourg

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Contact us

René Paulussen

Alternatives Leader, PwC Luxembourg

Tel: +352 621 332 385

Emanuela Sardi

Alternatives Clients & Markets Leader, PwC Luxembourg

Tel: +352 621 332 684

Luc Petit

Tax Partner, Clients & Markets Hedge Funds Leader, PwC Luxembourg

Tel: +352 49 48 48 3148

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