11 June 2018

Structuring Private Equity Deals

  

Structuring private equity investments and private equity firms

 

When it comes to structuring private equity deals, Luxembourg is recognised as a particularly advantageous jurisdiction thanks to its flexible legal, its tax environment and also through the various structures available:

  • SOPARFI is a vehicle dedicated to private equity deals. The SOPARFI can acquire private equity investments in an efficient tax manner with a minimal legal and administrative burden.

  • Special limited partnership which is a vehicle dedicated to co-investment, partnership investment. It is tax transparent and has become one of the most flexible and sought-after company structures that promoters set up in Luxembourg.

  • SICAR is a regulated investment fund specialised in capital risk.

Issuance of Equity or Debt Instruments


Promoters, investors and private equity firms may prefer Luxembourg for a variety of reasons:

  • No minimum capital for partnerships. The minimum capital for an S.A./S.C.A. is EUR 30.000 (minimum ¼ paid in) and for a S.à r.l. EUR 12.500 (fully paid in) and these can be represented in a non-euro currency

  • Investors can incorporate the company by contribution in cash or in kind. No capital duty applies on incorporation general partnership vehicles can be incorporated

  • An external auditor valuation is mandatory only for SA/SCA but not for a S.à r.l. nor for partnerships the vehicle's shares may be listed on the Luxembourg Stock Exchange (or on any stock exchange abroad)

  • Capital premium may be used. Contributions must not necessarily be represented by an increase in capital or issuance of shares


For more information regarding the different structures, please contact Creacom@creatrust.com or by telephone to Corporate Department: on 00 352 277 297 40.

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