LU Compartment in a Fund
Many securitization vehicles based in Luxembourg take the form of funds with a multitude of sub-funds, which runs as an independent compartment in a fund Luxembourg encompassed within a same legal entity. Such a structure allows creating funds with varying strategies for different types of investments.
Each compartment has:
- Distinct assets and rights
- The possibility of creating shares with different and/or distinct rights
- A management orientation that may be completely different from the others
Creating a compartment is extremely advantageous on account of:
- Tax and administrative ease
- Economies of scale
- Centralization of all operating activities relating to the fund’s management
Why Hance Law?
Hance Law is experienced with the legal, collateral, financial and operational issues that arise in tge development of new transaction structures, as well as with Uniform Commercial Code, insolvency, substantive no consolidation and tax opinions delivered in connection with securitization transactions. As valued business advisors, We have significant expertise in the documentation and negotiation of various types of domestic and cross-border financings, including numerous types of asset securitizations and other asset-backed transactions such as commercial paper conduit securitizations, single and multi-asset securitizations, as well as all kinds of structured facilities