The Luxembourg SPF: A Private Wealth Management Company Of Choice

The Luxembourg private wealth management company (hereafter: SPF - société de gestion de patrimoine familial), governed by the Law of 11 May 2007, is a private wealth management vehicle which enables individuals to structure their estate in a simple, flexible, unregulated and tax-efficient manner and for numerous purposes, thereby appealing to various types of investors. Ultimately, with Luxembourg being a highly developed centre of legal and financial services, private individuals wishing to structure their assets' holding and financing benefit from a one-stop-shop meeting all their expectations.

Main characteristics and benefits of the SPF

Private character and design - certainty regarding co-investor(s) and targeted approach to risk allocation Separate legal personality - limited liability Advantages of a holding company instead of a direct placement of capital for private individuals Flexibility in investment structuring Simplified and attractive taxation Simplified incorporation - low procedural and initial share capital requirements Private character & design

Eligible investors are either:

private individuals managing their own private wealth; or private wealth management entities acting exclusively for the estate of one or more individuals, which may be resident and non-resident entities, such as foundations, trusts or stichtings. The eligibility of those entities is interpreted in a wide sense, with their sole purpose required to be the management of assets of one or more physical persons; or intermediaries (including fiduciaries) acting on behalf of the persons listed under (i) and (ii) above. Although its name might imply that it is limited to families and their members, the SPF only serves to denominate investors' access to private individuals, and there is in fact no family tie required.

Moreover, the SPF is an ideal vehicle for both investment clubs and/or beginner and non-professional investors who wish to test the functioning of their relationships with potential co-investors. A great deal of discretion and anonymity can also be achieved if the SPF is structured properly.

Finally, shares of an SPF may not be listed on a stock exchange, or be subject to public placement.

Separate legal personality - limited liability

The SPF's legal personality, by being separate from that of its investors, limits their liability to their respective contributions, and consequently greatly improves their position regarding liability towards...