The regulations of securitised titles in Luxembourg

A flexible environment to securitize private equity funds.

Luxembourg is well known for its legal and fiscal environment which are beneficial for securitisation vehicles, this makes it an interesting destination for such activity.

One of the areas in which these vehicles excel is securitisation for private equity funds.

The regulation of Luxembourg financial products provides a flexible and innovative legal and fiscal framework which allows to create and to work a wide range of securitisation vehicles, these can be customized to satisfy specific investors’ needs and are particularly beneficial for intercontinental transactions.

Luxembourg offers a wide range of vehicles, characterizing element is the widest choice of underlying assets compared to the normal european normative, allowing securitization both on liquid and illiquid goods.

Example that stands out is the securitization of private equity funds, both european and extra-european, favored by a small request of regulatory commitments for the emittents. The regulation of debit titles of Luxembourg offers access to a wider range of investors.

The well-developed legal and regulatory framework, combined with its favorable fiscal regime, make it the ideal location for securitization activities that involve more countries in the world.

In synthesis, the regulation of debt titles in Luxembourg provides a flexible framework thanks to which the vehicles can be structured to fulfill specific needs coming from the investors; for this reason in the last year the demand for this vehicle has strongly increased.

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