Anne-Gaelle Delabye, a partner in Ogier's Luxembourg
investment funds team, discusses the advantages, challenges and
considerations to be made when setting up a Luxembourg parallel
fund structure.
In terms of why Luxembourg, it's clearly becoming one of the
preferred jurisdictions for those seeking to access European
capital by way of a parallel fund structure. This is due in no
small part to Luxembourg's extensive product toolkit.
Q: What is a parallel fund structure?
A: Parallel funds are those which co-invest and
divest alongside the main fund. They co-invest and divest at the
same time and on similar terms. This is on a pro-rata basis per
their commitments, so a manager has two funds side by side which
invest and divest at the same time in a common portfolio of assets.
The terms on which the parallel fund operates are similar to the
terms of the main fund. This means that the parallel fund has a
common investment policy, and common asset targets because they
