Open a European Investment Fund in Luxembourg

Open a European Investment Fund in Luxembourg

Updated on Saturday 20th November 2021

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Open-a-European-Investment-Fund-in-Luxembourg.jpgThe European Investment Fund (EIF) represents a structure that was created for the purpose of raising capital for small and medium-sized companies (SMEs). The EIF has as a main target the SMEs that are located in European states; however, it is worth knowing that the EIF does not work as standard investment fund, which can directly invest in a project. 
The EIF lends money and invests in European SMEs through banks. The EIF has its headquarters in Luxembourg, which is one of the most developed financial markets at a global level, with one of the most competitive financial and investment markets. In Europe, Luxembourg is the top destination chosen by investors. Thus, if you want to open an investment fund in Luxembourg, we invite you to read the following article, prepared by our team of financial representatives

What are the services of the European Investment Fund in Luxembourg?

The EIF in Luxembourg is a part of the European Investment Bank (EIB). The EIB represents the main shareholder of the EIF, which is specialized in providing access to funding for European SMEs through risk finance and venture capital instruments and services. As a general rule, companies can benefit from finance obtained through the EIF in Luxembourg if they provide a new service or a new product on the market, or, in general terms, if they have an innovative component in their activity.
Thus, companies operating as start-ups can easily access the funds that can be obtained through the European Investment Fund in Luxembourg, but other types of companies can also receive funding. The EIF can be accessed when a company needs micro-financing, but it is also important to know that the EIF is the ideal instrument for businesses in the case in which they have contracted a loan through a bank and they need to cover the respective loan. 
Besides these main types of activities, the EIF in Luxembourg also acts an entity that can provide help to countries that are in the process of accessing the European Union (EU). The services of the EIF are limited only to the EU member states or to the European states that are in the process of accessing the EU; however, the EIF in Luxembourg is also available for the businesses located in Liechtenstein and Norway. 
If you need further information, our team of financial advisors can offer an in-depth presentation on the ways in which the EIF can be of assistance for European businesses. Our team can also assist businessmen in the case in which they want to open an investment fund in Luxembourg

The highlights of the EIF in Luxembourg 

If you want to open a Luxembourg fund or if you are interested to start a business in this country and you need financial assistance, you may find the next information on EIF useful. The EIF has been operating for several decades, and it is set up by reputable and solid structures. Moreover, it has provided its financial services to numerous European businesses. You can find few of such data in the list below: 
  • the EIF in Luxembourg gained legal personality on 25 May 1994, when the European Investment Bank, through the Board of Governors, decided through a Resolution the creation of this institution;
  • on 28 December 2018, the EIF had a total of 4,500 authorized and subscribed shares;
  • out of these shares, the European Investment Bank held the majority (58.645%), while the European Commission had a shareholding of 29.710%, and the rest, of 11.645%, was held by European financial institutions and financial institutions from Turkey;
  • since the incorporation of EIF, more than 1 million European companies obtained financial assistance and funding;
  • the assets held by the EIF account for $2,965,237,729.

Investments in private equity funds in Luxembourg 

The European Investment Fund in Luxembourg also has the legal right to invest in specific types of funds. Thus, local and foreign investors who want to open an investment fund in Luxembourg can benefit from the services of the institution. This can apply for vehicles that operate as private equity funds or venture capital funds. Funds that fall into these category can address an investment proposal to the EIF, which will then be analyzed and, if successful, the fund can benefit from investments from the EIF
In this particular case, the team representing the fund has to complete an investment proposal form and to provide accurate and detailed information on various matters, such as the investment strategy, the size of the fund, its legal structure and so on. If you need assistance, we invite you to contact our team of financial advisors, who can also represent you in the process of opening a Luxembourg fund