US Fund Managers – Insourcing Functions Related To Luxembourg Holding Structures

When US fund managers tap into the European investor market, they frequently offer prospective European investors the option to commit to a Luxembourg fund vehicle. EU investors generally prefer to commit to such a fund vehicle rather than an offshore vehicle, because of “smell test” reasons. 

It is not only EU fund raising that often comes with a Luxembourg angle. When US fund managers target European assets, they will encounter that this often also comes with a Luxembourg angle in the form of a Luxembourg acquisition structure.

As the title suggests, this article is dedicated to the US market, but conclusions apply similarly to fund managers based in other countries.

The drivers for a Luxembourg acquisition structure