One of our clients participates in the management of portfolios
He would like to develop a new strategy for his portfolio management. Before setting up the fund, he would like to test it. Some of his contacts (HNWIs, family members or friends) have already shown their interest in having shares in the vehicle he would like to manage.
Our client decides to set up a SARL company with a capital of EUR 12.500. He is the unique manager and partner.
The first new shareholder joins this SARL company to create a Sicav. The SARL company becomes thus the manager of this Sicav.
The Sicav, which has a variable capital, issues shares to the new shareholders. An AIFM regulated manager is appointed to the Sicav.
The management fees and performance fees on the assets management of the Sicav are paid to the SARL company, and once a month, a NAV is calculated. Fiscally, the Sicav is considered as a company but is tax exempt. No withholding taxes are applicable on distribution or redemption of the shares.
Such a structure can be used to all projects related to alternative assets (shares, funds, credits, funds of funds, hedge funds, currencies, futures, derivatives, commodities, …)
The Sicav can create different compartments to be invested in other type of assets in the future.
Case Study 2
One of our clients participates in real estate construction
Our client plans to develop a real estate project implying important capital investments. Many of his contacts, who are wealthy individuals, or family members or friends, would like to subscribe in a real estate vehicle managed by our client. His expertise makes him enough qualified to carry out this project with success.
He decided to set up a SARL company with a capital of EUR 12.500 of which he is the sole manager and partner.
A Special Limited Partnership (“SLP”) is created jointly by the SARL company and the first new shareholder (Limited Partner). Thus the SARL company becomes the adviser of the Reserved alternative Investment Fund which is set up as a Special Limited Partnership. Shares are issued by the SLP to the several shareholders (LPs).
A NAV is calculated once a year based on the status of the real estate project. An alternative fund manager (AIFM) is appointed to manage the SLP and follow all the obligations included in the AIFM directive. A risk spreading rule is applicable. This means that the SLP should invest no more than 30% of its assets into one same project.
Such a structure can be used to all projects related to alternative assets, like real estate funds, private equity, venture capital, vulture fund, financial holding, …
Finally, the SLP can create different compartments to be invested in other type of assets in the future.