Securitization Vehicle Classifications in Luxembourg

securitization funds

securitization funds

 

A longtime financial executive based in Luxembourg, Dirk Coetzer serves as a managing partner with Firminy Capital Sarl and ICON Capital Sarl. As an organizational leader with the two private securitization funds, Dirk Coetzer guides the firms’ activities in the Luxembourg securitization market.

Luxembourg law allows for the securitization of many different types of assets, ranging from shares and bonds to debt-linked risks and immovable property. Under Luxembourg law, individuals and entities must classify their securitization vehicles as either a company or a fund.

Securitization companies must operate as joint stock companies, public limited companies, cooperatives with limited liability, or private limited companies. Securitization funds, on the other hand, have no official legal standing and fall under the management of a commercial company. If a securitization fund is formed from one or more fiduciary estates, it falls under the jurisdiction of trust and fiduciary contract law. If a fund consists of multiple joint ownership agreements, it operates according to a co-ownership scheme.

All securitization vehicles in Luxembourg enjoy tax neutrality. To learn more about securitization vehicles in Luxembourg and the Agency for the Development of the Financial Centre, visit luxembourgforfinance.com.

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