As part of the implementation of the AIFMD, Luxembourg has taken the opportunity to modernise its corporate law. As a result, the regime applicable to limited partnerships (société en commandite simple) (the LP) has become more attractive. In addition, a new special limited partnership (sociéte en commandite spéciale) (the SLP) has been introduced as part of the reforms. Both the LP and the SLP will offer private equity houses Luxembourg investment vehicles similar to the English LP and which are therefore familiar to them in form.
Part of the attractiveness of the new regime stems from its availability to be used for the popular Luxembourg regulated investment vehicles, the SICAR (société d’investissement en capital à risque) and the SIF (specialised investment fund), which are commonly used to structure private equity funds. To view the key features of the LP and SLP click here.
The Luxembourg limited partnership regime is characterised by the prevailing freedom of contract and lack of formalities. Modelled on the English LP, it now offers a true alternative to promoters to establish their regulated funds as well as their unregulated vehicles in Luxembourg.
Hogan Lovells opened its office in Luxembourg on 1 August 2013, and offers a full investment funds capability including in the corporate, real estate and private equity sectors.