Investment funds in Spain
can be registered as open-ended
. While in an open-ended fund
the investors can benefit from a variable capital, in the case of a closed-ended fund
the capital is raised by numerous investors and the respective sum has to be a fixed amount of capital. At the same time, the closed-ended fund
is limited in terms of share issuance. Our team of lawyers in Spain
can offer in-depth information on the characteristics of a closed-ended fund
and the registration requirements.
Characteristics of a closed-ended fund in Spain
A closed-ended fund obtains capital through an initial public offering, which is performed through the issuance of shares. Then, the investors purchase the respective shares in the form of stocks. The applicable legislation states that this type of vehicle must be managed by a management company.
Closed-ended collective investment schemes in Spain
Because the capital of a closed-ended investment scheme
is raised through the participation of numerous investors, they fall under the category of collective investment schemes (CIS)
. Closed-ended CIS in Spain
assume that the investors can obtain their return on investment
only at certain moments.
Further on, the closed-ended CIS
can be regulated by different rules of law. In this sense, we mention the Law 25/2005, referring to the regulations of Venture Capital Entities
. Investors may find out more details on the legislation from our attorneys in Spain
Closed-ended funds can also be set up in Spain for securitization purposes and in this case the main rule of law is the Securities Market Law.
AIFM Directive in Spain
As a member state of the European Union, Spain
has implemented the Alternative Investment Fund Managers Directive
, which is applicable to CIS
. All collective investment schemes in Spain
, can be considered alternative investment funds
, in the situation in which they do not fall under the UCITS category
The regulation was created to provide a simpler manner to market such funds on the European market.
We invite businessmen to receive further details on the closed-ended investment funds
from our law firm in Spain
. Please contact our lawyers
for personalized legal advice.