Regulated, on-shore, fiscally efficient : those are the core characteristics of the investment company in risk capital (Société d’Investissement en Capital à Risque – SICAR). The SICAR Luxembourg regulated investment vehicle is extremely well-suited for private equity and venture capital. It combines attractive tax status with lighter regulatory requirements : no investment diversification rules, nor lending or leverage restrictions.
A Luxembourg SICAR invests its assets in securities representing risk capital in order to make its investors profit from results of assets’ management in consideration for the risk encountered. The term risk capital comprises direct or indirect contributions of assets into entities to enable/facilitate their launch, their development or their listing on a stock exchange.
Securities issued by a SICAR are reserved to “informed investors” (knowledgeable investors or investors investing at least EUR 125,000). However, there are no restrictions imposed on portfolio investments or investment policies. Dividend distribution is not prescribed nor limited.
The SICAR is subject to the Law dated 15 June 2004 on the investment company in risk capital (the “SICAR Law”) as amended by the Law of October 24th, 2008.