Collectibles / Classic Cars / Jewellery Funds

Why do managers want to create their Collectible Fund as a SLP in Luxembourg?

The use of the Special Limited Partnership is particularly advantageous thanks to its flexible legal and tax environment, with key benefits for car/jewelry strategies being:

• No limitation in the type of assets or art strategies (buy & hold, showcasing, period, etc.) the manager chooses to invest in
• No risk spreading rule to observe – which means that the whole NAV of the car/jewelry fund can be invested in one type of assets
• Use of derivatives or leverage is possible (with limitations)
• The valuer, experts, broker(s) can be appointed anywhere in the world
• No need for a depository bank

And more generally:

• The fund remains an unregulated fund
• No minimum capital
• Unlimited number of investors
• External auditor is not mandatory
• The identity of the investors is not public.
• Full tax transparency – no withholding tax upon distribution of the dividends or profit
• The Special Limited Partnership is a vehicle that can be used to set-up as an art fund easily within a short timeframe (1-2 weeks).
• It can be managed by an asset manager based abroad (non resident in Luxembourg).
• The broker can be established in Luxembourg or abroad