Special purpose vehicles used for acquisitions, joint ventures and cross-border investment platforms — isolating individual investments within a single legal entity.
Luxembourg special purpose vehicles (SPV) are widely used in international investment structures, acquisitions and joint venture projects. Investors frequently establish Luxembourg entities to act as dedicated vehicles holding specific assets or project companies.
SPVs are commonly incorporated as a Société à responsabilité limitée (S.à r.l.) or Société anonyme (S.A.) under the Law of 10 August 1915 on commercial companies. Such vehicles allow investors to isolate individual investments, organise financing structures and manage cross-border ownership of assets within a single legal entity.
| Structure | Legal form | Regulatory status | Typical use | Typical investors |
|---|---|---|---|---|
| SOPARFI | Commercial company (S.à r.l. / S.A.) | Not regulated as a fund | Holding platform for corporate investments and subsidiaries | Multinational groups, private investors |
| SCSp | Special limited partnership | Generally unregulated | Private equity and alternative investment funds | PE sponsors, institutional investors |
| SIF | Specialised Investment Fund | Regulated by CSSF | Diversified funds for professional investors | Institutional investors, asset managers |
| RAIF | Reserved Alternative Investment Fund | Indirect, via authorised AIFM | Alternative funds with a flexible structure | Private equity funds, hedge funds |
| SICAR | Investment company in risk capital | Regulated by CSSF | Venture capital and private equity investments | Professional investors |
While commercial holding companies such as SOPARFI are frequently used by multinational groups, specialised structures such as SCSp, RAIF and SIF are commonly used by private equity sponsors and investment managers. Regulated investment funds fall under the supervision of the Commission de Surveillance du Secteur Financier (CSSF).
Luxembourg has one of Europe’s most sophisticated frameworks for investment funds and alternative structures, hosting thousands of funds used by international asset managers, private equity sponsors and institutional investors. Structures operate under specialised legislation including the Law of 13 February 2007 (SIF) and the Law of 23 July 2016 (RAIF).
Regulated funds fall under CSSF supervision, with much of the industry concentrated in the Kirchberg financial district of Luxembourg City — making Luxembourg one of the leading domiciles for cross-border investment funds. See our investment funds guide for detail on RAIF, SIF and SICAR.
International sponsors frequently establish Luxembourg entities to manage investments in portfolio companies across Europe and other regions. Common structures include SCSp partnerships used by private equity funds, and RAIF structures managed by authorised AIFMs.
These allow managers to organise capital commitments from institutional investors, coordinate acquisitions and manage portfolio companies within a single legal framework — supported by Luxembourg’s extensive network of legal, administrative and financial service providers.
Structuring investment platforms using SOPARFI or SCSp vehicles.
Incorporation of Luxembourg S.à r.l. and S.A. structures.
Special purpose vehicles for acquisitions and investment projects.
Ownership platforms across Luxembourg and other jurisdictions such as the Netherlands.
Directors, governance framework and corporate documentation.
Coordination with Luxembourg advisers, administrators and authorities.
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