Luxembourg is Europe’s number one investment centre and the world’s leading hub for global fund distribution. The Specialised Investment Funds (SIFs) law of February 2007, significantly relaxed rules relating to the ‘eligible investors’ and ‘eligible assets’, adding to the allure of Luxembourg as the world’s fund centre of choice for both promoters and investors alike.
It is within the frame work of the SIF 2007 law that SICAV SIFs in general and the
KMG SICAV-SIF platform, in particular, operate.
A SICAV SIF is an onshore Luxembourg investment fund. A SIF takes a collective investment approach to investor funds and applies the principle of risk diversification. It can be structured as (amongst others) an open ended legal entity with variable capital (SICAV) which may create dedicated funds with different investment policies.
The structure can play host to a wide variety of asset types, including both traditional and alternative investment products. There are few restrictions on leveraging, making it ideal for Private Equity, Hedge Funds and Property Funds. The rules are designed to accommodate all investment styles and objectives.
A SICAV SIF is a truly multi-purpose investment vehicle that is operationally flexible and fiscally efficient and is marketable both internationally and within EU member States to Institutional Investors and individuals who qualify as “Well Informed Investors”.
There are no distribution restrictions other than the fact that investments in the fund can only be made by "well informed" investors.
To qualify as a "well informed" investor you must be either:
An Institutional Investor
A Professional Investor
Any other investor who has confirmed in writing that they adhere to the status of a "well informed" investor and who:
Either invests a minimum of EURO 125,000 in the specialised investment fund;
Or who has an appraisal from an EU bank, an investment firm or a management company certifying that they have the appropriate expertise, experience and knowledge to adequately understand the investment made in the fund.
This last category gives Sophisticated Investors (including High Net Worth Individuals) access to the flexible and tax attractive regime of SIFs.
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