Legal Framework (SICAR) - #265-254*

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.

*Podcast #265:

Legal Framework (SICAR) #265-254* *Article #265-254 *YouTube Video 254| Any content published on MariauxAvocats.com does not constitute legal advice. Its sole purpose is to provide general information at the date of publication. Whenever necessary, it is preferable to seek advice from a licensed lawyer.

*YouTube Video 254|: 

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)

Eligible Assets (SICAR) - #264-253*

An investment company in risk capital (société d’investissement en capital à risque - “SICAR”) must invest its assets in securities representing risk capital. 

The amended law of 15 June 2004 relating to SICAR (the “SICAR Law”) defines investment in risk capital.

Investment in risk capital is the (i) direct or indirect contribution of assets to (ii) entities; 

in view of their,

• launch;

• development; or 

• listing on a stock exchange.

References: Article 1(1) & (2) of the SICAR Law; Eligible Investors (SICAR), Septembre 8, 2020, Bertrand Mariaux.

*Podcast #264:

Eligible Assets (SICAR) #264-253* *Article #264-253 *YouTube Video 253| . . . . . . . .

*YouTube Video 253|: 

Eligible Assets (SICAR) #264-253* *Article #264-253 *Podcast #264 *YouTube Video 253|

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)

Eligible Investors (SICAR) - #263-252*

Investment in an investment company in risk capital (société d'investissement en capital à risque - “SICAR”) is reserved to “well-informed” investors. 

The amended law of 15 June 2004 relating to SICAR (the “SICAR Law”) defines well informed investors as: 

• institutional investors;

• professional investors; or

• any investor who meets the following conditions:

1. the investor has confirmed in writing that he adheres to the status of well-informed investor; and

2. the investor invests a minimum of 125,000€ in the SICAR, or

3. the investor has been assessed by: 

   • a credit institution;

   • an investment firm; or

   • a management company, which certifies his expertise, his experience and his knowledge in adequately appraising an investment in risk capital.

References: Article 2 §1 of the SICAR Law; Investment Company in Risk Capital (SICAR) - Introduction, September 7, 2020, Bertrand Mariaux.

*Podcast #263:

Eligible Investors (SICAR) - #263-252* *Article #263-252 *YouTube Video 252| . . . . . . . .

*YouTube Video 252|: 

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)

Investment Company in Risk Capital (SICAR) - Introduction - #262-251*

An investment company in risk capital (société d'investissement en capital à risque - “SICAR”) is a financial vehicle tailored for private equity and venture capital investments. It may qualify as an alternative investment fund (“AIF”). Securities or partnership interests of the SICAR are reserved to well-informed investors. SICARs that have appointed a European alternative investment fund manager (“AIFM”) can market their securities or partnership interests to investors across Europe via a specific passport. 

References: Articles 1(1) & (2) of the amended law of 15 June 2004 relating to SICAR (the “SICAR Law”); for specific provisions applicable to SICARs managed by an alternative investment fund manager, see: Part II – Specific provisions applicable to SICARs managed by an AIFM authorised under Chapter 2 of the law of 12 July 2013 on alternative investment fund managers or under Chapter II of Directive 2011/61/EU of the SICAR Law; for the definition of well informed investors, see Article 2 §1 of the SICAR Law.

*Podcast #262:

Investment Company in Risk Capital (SICAR) - Introduction - #262-251* *Article #262-251 *YouTube Video 251| . . . . . . . .

*YouTube Video 251|: 

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)