This episode is also available as a blog post: https://10leaves.ae/publications/luxembourg/investment-company-in-risk-capital-sicar-in-luxembourg
What is a Luxembourg SICAR?
The investment company in risk capital (SICAR) is an investment fund structure in Luxembourg. It is governed by the SICAR Law of 2004, and can mainly invest into risk-bearing assets, without the requirement of spreading or diversifying the risk. The SICAR is only open to qualified investors.
A Luxembourg SICAR is regulated by the CSSF. Currently there are over 250 SICARs setup in Luxembourg, with over EUR 58 billion of assets under management.
What assets can the SICAR invest in?
Usually, SICARs invest in unlisted companies, whether in the form of equity or debt. They can also invest in any geography, not just the European Union. Investments into listen companies can also qualify in some instances, for example, when the investment aims to finance a new line of business.
There is no requirement for the SICAR to diversify it’s risks.
