A complex regulatory environment
Investment structures often include fund vehicles, their management structures, special purpose vehicles (SPVs) or holding companies. Structures may be subject to regulation by the Luxembourg financial regulator, CSSF, or may be unregulated. Investments may include traditional or alternative asset classes, such as credit funds, debt funds, hedge funds, real estate, private equity and venture capital investments.
AIFs are mostly subject to the SIF and RAIF legislation and can be structured either as a corporate (SICAV or SICAF) or a contractual vehicle (FCP), as well as Luxembourg partnerships (S.C.Sp. and S.C.S.). Partnerships are mainly used for investments in alternative asset classes.
UCITS are subject to a higher investor protection and may only be structured as corporate or contractual vehicles.
With the presence of one or more independent directors at the level of the management body, investors will be given reasonable comfort that conflicts of interest are avoided or mitigated. Furthermore an independent director will normally contribute to the establishment and the ongoing respect of sound and adequate procedures at the level of the management body and in the daily dealings with the service providers of the investment vehicle.
How can Governance Partners help?
Governance Partners offers extensive practical experience in governance aspects for corporate structures subject to various regulatory frameworks, such as investment funds operated as UCITS or AIFs, as well as their management companies or alternative investment fund managers.
Governance Partners offers highly professional, independent directorship services for Luxembourg corporate structures.
Governance Partners operates in a strictly independent way, allowing to perform unbiased and objective services within a corporation’s governing body. A Governance Partners director will assist the governing body in understanding and adapting to a constantly evolving legal and regulatory framework and may act as the local contact point for the corporate structure’s Luxembourg service providers.