Alternative Investment Funds - Luxembourg
Grow your business in ideal conditions
Alternative investment funds, has for many years been a pillar of the Luxembourg investment management industry. Particularly, with the introduction of the SIF and AIFMD regimes, Luxembourg created a favorable environment for the structuring of funds, including alternative vehicles.
The Luxembourg law implementing the European Directive on Alternative Investment Fund Managers (AIFMD) entered into force in July 2013. While regulating investment fund managers (AIFMs), this law has had significant effects on Alternative Investment Funds (AIF) themselves, thereby reshaping dramatically the alternative investment industry as a whole.
An important change introduced by the law relates to the definition of an AIF. The traditional understanding that AIFs are funds investing in alternative strategies and are reserved for qualified investors no longer prevails. The term AIF now refers broadly to all funds outside the Undertaking for Collective Investment in Transferable Securities (UCITS) regime. This includes investment funds exposed to traditional mainstream strategies and, in some cases, funds available to retail investors.
One of the most important opportunities presented by the adoption of AIFMD is the possibility for Luxembourg AIFs to be distributed to professional investors under an EU passport, on the proviso that they are managed by fund managers authorized under the AIFMD, located in Luxembourg or abroad.
What Luxembourg and Deloitte have to offer?
Luxembourg has a lot to offer in terms of taking advantage of this new paradigm as it benefits from a strong legal environment as well as from a multinational, multilingual, professional workforce, which has developed sophisticated expertise covering the full range of fund services.
With its accumulated expertise and its drive towards product development and technological innovation, Luxembourg is a leading fund center and the domicile of choice for the structuring and crossborder distribution of investment funds.
Deloitte is able to help you take up the challenges of today and prepare you for those of tomorrow. Summarized below is a list of the range of services Deloitte can deliver throughout the life-cycle of your AIF:
- Ascertain the choice of the most appropriate structure and form of your AIF
- Establish investment and distribution goals
- Determine AIF characteristics and tax structuring
- Assist in the organization of the due diligence process for the selection of the main service providers
Fund set-up and maintenance
- Assist in the preparation and updating of the AIF documentation
- Assist in preparing and/or reviewing your risk management procedures and conflicts of interest policies
- Registration and maintenance services for distribution and passporting
- Analysis of private placement possibilities
- Coordinate contacts with the CSSF or foreign regulators as the case may be
- Prepare/ coordinate foreign tax reporting
- Provide audit services
- Prepare/review local tax filings, including VAT
Specific services for specific needs
- Assist in stock exchange listing
- Support your due diligence on any acquisitions envisaged
- Assist in the valuation of assets
- Agreed-upon procedures in the context of change of service providers
- Restructuring services
- Implementation and verification of performance standards (GIPS)