In a recent Financier Worldwide article, Squire Sanders partner Christopher A. Rose and of counsel Hagen Reinsberg discuss:
- How the EU’s new Alternative Investment Fund Managers (AIFM) Directive will impact private equity funds intending to market or manage funds in the EU
- Benefits of Luxembourg-based investment funds to Russian private equity fund sponsors
- Typical Luxembourg private equity fund structure including fund management, capital commitments, regulatory supervision and principal fund documents
The EU’s AIFM Directive – a response to the financial crisis and other recent events – will be implemented in all EU Member States by 2013. The AIFM Directive will significantly increase the regulatory requirements imposed on all offshore funds and fund managers intending to market or manage funds in the EU. As Chris and Hagen explain, Russia-focused private equity funds looking to minimize potential fundraising obstacles have compelling reasons to use lightly regulated onshore European fund destinations like Luxembourg. From tax efficient fund structures to a lenient legal and regulatory environment, Luxembourg is an attractive private equity market. Chris and Hagen provide an overview of the country’s specialized investment fund (SIF) and investment company in risk capital (SICAR) vehicles, which provide great flexibility in terms of investment policy, structure, organization and oversight, and explain the principal fund documents involved in forming a SIF or SICAR.
Read the full text of the Financier Worldwide article (PDF).
For more information on private equity in Russia and the CIS, please contact your principal Squire Sanders lawyer or one of the individuals listed in this Alert.
This article was first published in the August 2011 edition of Financier Worldwide and is reproduced with the permission of the publisher, Financier Worldwide Limited.