All Luxembourg investment funds vehicles can be used in responsible finance, whether they are regulated retail funds or professional investment funds, with a European marketing passport, multiple compartments umbrella funds (with different investment strategies in each compartment and separate profit and loss accounts). The defining basic factors include: (i) the nature of the investment and (ii) the target investors.
The most popular investment funds vehicles are:
the undertaking for collective investment in transferable securities (UCITS - organismes de placement collectif en valeurs mobilières (OPCVM), the standardised EU retail fund - UCITS are highly regulated;
the specialised investment funds (fonds d’investissement spécialisés) (SIF) - which provides flexibility and fiscal efficiency. The SIF is a multipurpose vehicle which can be used for all asset classes;
the investment company in risk capital (société d’investissement en capital à risque - SICAR). The SICAR is specifically designed for private equity investment and venture capital;
the undertaking for collective investment (UCI) Part II. The UCI Part II fund is flexible but more regulated;
the reserved alternative investment funds (RAIF) - fonds d’investissement alternatifs réservés - fast-time-to-market, it is regulated through the fund manager.
Funds with ESG features usually take the form of a UCITS or a SIF.
References: for UCITS / OPCVM and Part II Funds see: Law of 17 December 2010 relating to undertakings for collective investment as amended; for SIF see: Law of 13 February 2007 relating to specialised investment funds as amended; for SICAR see: Law of 15 June 2004 relating to the investment company in risk capital as amended; for RAIF see: Law of 23 July 2016 on reserved alternative investment funds, as amended; What is a RAIF?, 17 June 2020, Bertrand Mariaux.
*Podcast #245:
*YouTube Video 234|:
Bertrand Mariaux, Avocat à la Cour, LL.M. (hons.)
Prestation de serment: 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 en droit européen et international - mention économique, 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)