Content[ hide ] What is Special Limited Partnership? How can investing through an SLP benefit you? How to...
INVESTMENT FUND SET-UP
As a trusted financial institution, we understand the importance of establishing an investment fund that aligns with your financial goals and risk appetite. With our expertise and commitment to excellence, we provide a seamless and tailored approach to setting up your investment fund, ensuring regulatory compliance and optimal performance.
How to Set Up an Investment Fund
Setting up an investment fund requires important decisions and procedures. You must be aware of the following:
- Types of investment funds. Choose between closed-ended and open-ended funds, with closed-ended funds only traded on stock exchanges and open-ended funds permitting flexible trading. There are other possibilities, such as hedge funds, but they come with more risks and a separate set of rules. Before moving further, do extensive research and speak with a financial counselor.
- Specifications and rules. Learn about unit listing standards, minimum capital requirements, and registration requirements for stock exchanges. To protect your assets, find a custodian bank and depositary. Be aware that precise criteria might differ depending on the type of fund ‒ it is best to have a financial advisor to consult you before moving on.
- Fund structure. Choose a suitable legal organization, share classes, and tax status based on elements including fund size, investment strategy, and risk tolerance. To prevent such problems in the future, seek professional advice.
- Your expenses. Know the costs involved in establishing and running an investment fund, such as legal and administrative fees and marketing charges. Before moving further, accurately estimate these charges and make sure you have the necessary resources.
- Cooperation with an experienced team. Engage experts to help you create and manage your investment fund, such as investment managers, financial advisers, and attorneys. A competent team guarantees correct setup and efficient operations. Consult Thales Capital experts to determine setup and running costs so you can create a reasonable budget immediately.
You can trust your investment fund set up to the Thales Capital team to make the process run smoothly. We also offer fund structuring and private capital management services.
Fund Structure and Types of Investments
There are a few types of fund structures that can be set up in Luxembourg:
- SIF ‒ specialized investment fund;
- SICAR ‒ investment company in risk capital;
- RAIF ‒ reserved alternative investment fund.
You must choose a fund structure depending on your fund’s projected size, activity level, and life term after deciding which fund best meets your objectives. Administrative costs, if any, and how fund assets are invested are determined by fund structures. Commodities, stocks, and real estate are examples of available investment types.
Investment Fund Management and Fees
Efficient fund management is essential for generating optimal returns while effectively managing risks. Thales Capital offers professional management services to ensure the success of your investment fund. Our team possesses deep market knowledge and expertise in identifying opportunities, executing trades, and monitoring portfolio performance.
We maintain a transparent fee structure, clearly outlining the management and performance fees associated with our services, enabling you to make informed decisions about your investment fund’s management costs.
Investment Fund Performance and Risks
Thales Capital understands the importance of evaluating and monitoring the performance of your investment fund. We provide comprehensive reporting and analysis, allowing you to gauge the fund’s performance against relevant benchmarks and track its progress over time. Our team continuously monitors market trends, evaluates investment strategies, and adjusts the portfolio allocation accordingly, mitigating potential risks and maximizing returns.
Investment Fund Regulation and Compliance
Regulatory compliance is one of many crucial parts of running an investment fund.
The CSSF must receive a formal request for authorization. It’s also vital to remember that each approval process requires payment of fees to the CSSF. According to a Grand Ducal law of December 23, 2022, the acceptable fee amount consists of a one-time expense and an additional annual price.
Contact us now to help you set up an investment fund in compliance with EU & Luxembourg laws and make it work toward your financial objectives.