An investment company in risk capital (société d’investissement en capital à risque - “SICAR”) is primarily governed by the amended law of 15 June 2004 relating to SICAR (the “SICAR Law”). The SICAR Law was amended by the Law of 12 July 2013 on alternative investment fund managers (the “AIFM Law”). 

Indeed, there are two parts in the SICAR Law: 

• Part I refers to the general provisions applicable to all SICARs;

• Part II concerns the specific provisions applicable to SICARs qualifying as alternative investment funds (“AIFs”). AIFs are defined by the AIFM Law. AIFs must be managed by an alternative fund manager (“AIFM”). Most SICARs qualify as AIFs.

Another piece of legislation must be applied especially if SICARs invest in short-term assets or have distinct objectives offering returns in accordance with money market rates or where SICARs intend to preserve the value of the investment. The SICAR must then comply with the EU Regulation 2017/1131 on money market funds.

SICARs shall also comply with other pieces of legislation, at national and EU level (on anti money laundering, the amended markets in financial instruments Directive (The “MIFID II”), market abuse, derivatives, securities and general corporate law...).

References: Articles 1(39) and 4(1) of the AIFM Law; the EU Regulation 2017/1131 on money market funds; Determination of the AIFM, August 27, 2020, Bertrand Mariaux.

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Bertrand Mariaux, Avocat à la Cour, LL.M. (hons.)

Prestation de serment (Swearing-in oath): Luxembourg (2011), Certificat d’Aptitude à la Profession d’Avocat, École de Formation professionnelle des Barreaux de la Cour d’appel de Paris (2009), Bond University (LL.M. (distinct.), International Legal Practice, 2010), Université Sorbonne Paris Nord & University of Limerick (Master in European & International Law - major in economics, 2008), certified Expert in Microfinance (Frankfurt School of Finance & Management, 2015), social entrepreneurship (University of Oxford, 2015 & The Wharton School of Social Policy & Practice, 2014) and social & solidarity economy (International Labour Organization Academy - Social & Solidarity Economy, Organisation Internationale du Travail - Économie Sociale et Solidaire, 2017)