Private equity & venture capital
Luxembourg has a tailor made investment vehicle for the private equity and venture capital sectors. This is the investment company in risk capital (Société d’investissement en Capital à Risque) or SICAR.
The SICAR, which was created by the law of 15 June 2004, is complementary to the regime on undertakings for collective investment.
A SICAR invests its assets in securities representing risk capital in order to provide its investors with the benefit of the result of the management of its assets in consideration for the risk which they incur. By risk capital is understood the direct or indirect contribution of assets to entities in view of their launch, their development or their listing on a stock exchange.
By contrast with the law on undertakings for collective investment, the SICAR Act does not impose any investment diversification rules. A SICAR may therefore invest in just one or two companies, for example in particularly narrow sectors such as biotechnology or geological prospecting.
Investment in a SICAR is limited to qualified investors.
Our brochure Private Equity Investment Vehicles provides a detailed overview of the different structures available.
Further information can be found on the website of the Association of the Luxembourg Fund Industry (ALFI).
Practical guide:
How to set up a SICAR