New structuring opportunities for democratised private asset vehicles and other forthcoming changes: upgrading of the Luxembourg investment fund toolbox.
Posted - 17.04.2023
A new bill of law N°8183 (“Bill 8183”) was deposited at the end of March 2023 with the Luxembourg Parliament with the aim to improve and modernise the Luxembourg toolbox relating to investment funds by proposing certain targeted amendments to the Luxembourg fund laws.
Why is Bill 8183 important for managers engaging in the democratisation of their private asset strategies?
By modernising the Luxembourg investment fund toolbox, Bill 8183 intends to increase structuring opportunities for sponsors that wish to expand to non-professional investors the access to their private strategies (a trend known as ‘democratisation of private assets’) which is likely to reflect on the attractiveness and competitiveness of the Luxembourg financial centre.
In this respect, Bill 8183 proposes, in particular, to modernise the Part II UCIs regime (in which any type of investors - including retail - may invest) by offering new structuring options and flexibilities (including the possibility to structure Part II UCIs as partnerships), as well as wider access to RAIFs’ alternative investment strategies by well-informed investors other than professional investors, including through active marketing of RAIFs in Luxembourg. These amendments will also indirectly broaden the scope of available legal structures for ELTIFs, which will be of particular relevance in the context of ELTIF 2. ELTIF funds are often structured in Luxembourg as Part II UCIs or RAIFs.
Besides the above new perspectives for private asset democratisation, Bill 8183 also proposes certain other improvements, adjustments and harmonisation of the UCI, SIF, SICAR, RAIF and AIFM Laws, including certain amendments to and new exemptions from the subscription tax. The most important of these changes are briefly described under READ MORE below.
READ MORE HERE to see what is new for Luxembourg investment funds and investment fund managers.