Luxembourger

Investment Structures

The Funddesigner

Venture capital company (SICAR)

A venture capital company (SICAR) is a regulated instrument for investing in risk capital. SICAR are only open to qualified investors and can fall under the extended scope of AIFMD. In contrast to investment funds, SICAR are not bound to mandatory risk diversification. The Luxembourg Law of 13th June 2004 provides the relevant legal framework.

  • Regulatory oversight by authorities in Luxembourg
  • Funds only open to qualified investors
  • Investment only in risk capital
  • No mandatory risk diversification
  • Opportunity for umbrella structure with sub-funds
  • SICAR is subject to income tax in Luxembourg
  • Income from risk capital is exempt from tax
  • No annual subscription duty ("taxe d'abonnement")
  • Legal entity: corporation or partnership
  • Regulatory oversight by authorities in Luxembourg
  • Funds only open to qualified investors
  • Investment only in risk capital
  • No mandatory risk diversification
  • Opportunity for umbrella structure with sub-funds
  • SICAR is subject to income tax in Luxembourg
  • Income from risk capital is exempt from tax
  • No annual subscription duty ("taxe d'abonnement")
  • Legal entity: corporation or partnership