are alternative investment vehicles that rely on capital pooled from different investors and have different strategies for investment. They are managed by a professional management firm and these business structures can be used to invest in a large range of markets.
Luxembourg is one of the world’s largest investment funds centers in the world, with more than 13,800 funds under management at the end of 2014. The country is preferred by foreign investors
who want to start a hedge fund
because of its economic and fiscal stability and because the country has a good legal and regulatory framework for these types of investments vehicles.
Hedge fund: characteristics and particularities
Hedge funds in Luxembourg
are regulated and supervised by the Commission de Surveillance du Secteur Financier (CSSF)
. Hedge funds were traditionally established as UCIs (undertakings for collective investment) and they can also be created as specialized investment funds (SIF). The choice belongs to the investor and is largely based on the investment strategies and the targeted investor base.
Because hedge funds are regulated in Luxembourg, investors need to choose an appropriate hedge funds supervisor who can help service and manage the hedge fund. Fund administrators, depositaries, auditors and lawyers in Luxembourg
generally have the appropriate knowledge to help investors manage hedge funds. Our company incorporation agents in Luxembourg
can help you start a hedge fund and administer it.
Investing in Luxembourg hedge funds
Hedge funds can be incorporated as a public limited company, a private limited company, limited partnership or other business forms
. In Luxembourg, hedge funds can be set up under the following regimes:
Hedge funds in Luxembourg have to comply with the provisions of the Alternative Investment Fund Managers Directive and the implementing legislation.