SLP threshold EUR 100mio or EUR 500mio AUM?
2 Oct 2020
Let me try to give my input on the question raised in your recent exchange of emails with Milo.
Whatever entity which raises capital from a number of investors, with a view to investing it in accordance with a defined investment policy for the benefit of those investors and does not require authorisation pursuant to Article 5 of the UCITs Directive are considered as alternative investment funds ("AIFs").
Each AIF can either have a regulatory form (i.e. SIF, SICAR, RAIF ) or not; AIFs with a regulatory form can be submitted to the supervision of the CSSF (i.e. SIF, SICAR) or not (i.e. RAIF). All these can have different legal form i.e. SA SCA SCSp etc etc.
An AIF can be also set up without having a regulatory form as the case at hand i.e. SCSp
AIFs whose assets under management (a) including any assets acquired through use of leverage, in total do not exceed a threshold of EUR 100 million or (b) in total do not exceed a threshold of EUR 500 million when the portfolios of AIFs consist of AIFs that are unleveraged and have no redemption rights exercisable during a period of 5 years following the date of initial investment in each AIF can be self managed and do not require the appointment of an AIFM.
Whenever the AIF's asset under management exceeds such thresholds then the only obligation incumbent upon the AIF is to appoint an external alternative investment management fund; in other words, there is not obligations whatsoever for the Partnership to be transformed in RAIF but there is an obligation to appoint an external AIFM is the AUMs exceeds the above mentioned thresholds.
I hope this clarifies the matter.
kind regards
Carmine
Fri, 2 Oct
For further clarification:
1.) If my prospect makes a real estate investment and the only exit is the repayment and the valuation remains below EUR 500m until the end, without an interim option for redemption, we can set up a closed-end SLP without AIFM. Correct?
2.) If the SLP contains several properties (closed-end option), can individual sales be handled as partial repayments to the investors?
Fri, 2 Oct
the answer is Yes for both questions
kind regards
Carmine