Luxembourg: The gold standard for fund setup - London Business News | Londonlovesbusiness.com
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Luxembourg: The gold standard for fund setup - London Business News | Londonlovesbusiness.com
"At the heart of Luxembourg's appeal is the Special Limited Partnership (SCSp). This structure offers the flexibility of a partnership with the safeguards investors expect, but without the legal personality of a traditional company. That design makes it especially useful for private equity, venture capital, and hedge fund strategies. Managers can shape partnership agreements to fit the needs of institutional investors, all while staying in line with the Alternative Investment Fund Managers Directive (AIFMD)."
"Luxembourg's framework also integrates seamlessly with global distribution. Its UCITS and AIF platforms give fund managers access to investors across the EU and beyond, providing reach that few other domiciles can match. At the same time, the Commission de Surveillance du Secteur Financier (CSSF) has established a reputation for striking a balance between robust oversight and pragmatic responsiveness; a combination highly valued by global fund sponsors."
"Luxembourg's broader ecosystem adds real weight to its appeal. Managers setting up funds there can tap into a deep pool of legal, advisory, and administration expertise. For investors, that kind of support translates into something just as valuable: confidence that their money is in a market built on strong governance and regulatory certainty. Importantly, Luxembourg is also positioning itself at the forefront of sustainable finance."
Luxembourg has positioned itself as a gold-standard fund domicile by combining regulatory innovation, strong investor safeguards, and seamless cross-border access. The Special Limited Partnership (SCSp) provides partnership flexibility without corporate personality, suiting private equity, venture capital, and hedge fund strategies while aligning with AIFMD. UCITS and AIF platforms enable distribution across the EU and beyond, giving managers broad investor reach. The CSSF balances robust oversight with pragmatic responsiveness, supporting global fund sponsors. A deep ecosystem of legal, advisory, and administration expertise underpins governance and regulatory certainty for investors. Fund structures like the RAIF support rapid launches within EU rules such as the SFDR, advancing sustainable finance.
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