Join us, alongside Sedlo Law Firm, on 25 May for our next briefing, taking place at the Novotel Luxembourg Centre.
During this conference, our Tax Partner and Head of Transfer Pricing, Oliver R. Hoor, and Sedlo Law Firm Managing Partner, Adrian Sedlo, will be providing a clear understanding and overview of Luxembourg solutions for debt investments.
Description
Over the past 20 years, investments into debt have become increasingly more popular in Luxembourg. The current economic environment combined with the interest rate policy of central banks and a more restrictive stance on lending by banks will create massive opportunities for investments into (distressed) debt in 2023 and the years to come.
Investments into debt may be made via different investment vehicles including, in particular, Luxembourg companies, securitisation vehicles and funds, or a combination thereof. In some cases, investments may also involve foreign investment vehicles such as local securitization vehicles.
The choice of the optimal investment platform may depend on several factors such as the preferences of the investors, requirements from the perspective of the investment jurisdiction(s), constraints from a regulatory perspective and the magnitude of the investment.
This seminar will provide participants with a clear view on how investments into debt may be made in Luxembourg when looking at legal, tax and regulatory aspects.
Agenda
1) Investment strategies
- Direct / primary lending vs. secondary lending
- Distressed debt
- Mezzanine (or subordinated) debt
- Purchase of securities on the secondary market
- Purchase of newly issued securities
2) Regulatory considerations
- Luxembourg regulatory framework
- Impact of foreign regulatory aspects
3) Investment vehicles
- "Ordinary” Luxembourg companies
- Luxembourg securitisation vehicles
- Luxembourg fund vehicles
4) Typical investment structures
- Luxembourg fund with a Luxembourg investment platform
- Luxembourg fund with local investment vehicles
- Luxembourg securitisation structures
5) Substance requirements
- The notion of substance
- Requirements from a Luxembourg and foreign perspective
- Best practice recommendations
6) Transfer pricing considerations
- What transactions are subject to the arm’s length principle?
- How to determine an arm’s length remuneration?
- Documentation requirements
7) Potential reporting obligations under the Mandatory Disclosure Regime (DAC6)
- Hallmarks to consider
- Main benefit test
- Managing potential reporting obligations in practice
If you are looking to register for this event, please contact our team on events@atoz.lu.