Luxembourg Fund Setup
A Luxembourg Fund can be operational and ready for raising capital in only two weeks. Find out more:
A Luxembourg fund can be set up in only two weeks, ready to raise capital. This is accomplished so long as the total capital to be raised in the fund will not exceed EUR 100 million. The general procedure to set up a Luxembourg fund includes the following steps:
- set up a Luxembourg limited liability company with minimum capital to be appointed General Partner
- drafting of the Limited Partnership Agreement, including a term sheet
- drafting subscription form
- registration of the General Partner as a AIFM with CSSF
- registration of the SLP in the commercial register
With this structure as described above, one can start in only one or two weeks to collect subscriptions from investors.
As long as the fund does not exceed the level of EUR 100 million assets under management ("AUM"), then the AIFM Directive does not apply. Once the fund exceeds EUR 100 million AUM, then the fund must appoint an Alternative Investment Management Firm ("AIMF"), regulated in Luxembourg, whose costs will vary with the type of assets, the AUM of the Luxembourg fund, the work related to risk management, etc. In a typical scenario, one would expect to pay approximately EUR 10 to 20,000 per year for the appointed AIMF.
We can assist you to set up a Luxembourg fund and to be up an running in only about two weeks.
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