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We assist fund managers in the setting up of EuVECA and EuSEF funds

 

SGG Group provides A to Z solutions to fund managers willing to set up European Venture Capital Funds (EuVECA) and European Social Entrepreneurship Funds (EuSEF). The objective of these regulations is to improve access to funding for growing companies by allowing market participants to invest in small and medium-sized enterprises (SMEs) and social ventures throughout Europe.

Objectives

EuVECA labelled funds aim to support new and innovative firms while EuSEF labelled funds have a greater focus on investment in ventures whose objective is to have a positive social impact.

Requirements

For a fund to be labelled under EuVECA or EuSEF regulations, it should be established in the European Union (EU) and must be qualified as an “alternative investment fund” (AIF) under the Alternative Investment Fund Managers Directive (AIFMD). The fund should further be projected to invest 70% or more of its aggregate capital contributions and uncalled committed capital in defined "qualifying investments" and not use leverage (other than in strictly limited circumstances).

Moreover, the AIFM of a EuVECA or EuSEF must also be established in the EU and be registered with its home Member State regulator. In addition, it should manage assets below the threshold set out in Article 3(2)(b) of AIFMD (i.e., managing unleveraged portfolios of less than EUR 500m with a minimum 5 year lock-in).

Marketing Passport under AIFMD

In return for compliance with the AIFM Directive, qualifying funds may “opt in” to an EU-wide marketing passport, under which an AIFM, which is registered in one Member State, may market qualifying funds as a EuVECA or EuSEF (as applicable) in all other Member States to professional clients, other investors investing at least €100,000 (who are well aware of the inherent risks of investment), executives, directors and employees involved in the management of the EuVECA or EuSEF.

How can SGG assist you in the setting up of the EuVECA and EuSEF?

SGG ensures that, from an investor’s, fund regulations’ and investment perspectives, everything complies with the EuVECA and EuSEF. Together with our partners and clients, we managed to successfully set-up several funds in several jurisdictions on both the EuVECA and EuSEF sides.

During the life cycle of the fund, SGG is able to provide the fund manager a full EuVECA and EuSEF scope of services. This includes an AIFM, transfer agency services, all accounting regulations and capital calls, to name a few. Most importantly, we provide a full compliance service to the investors, investments and the fund.

If you would like more information about how SGG can support you with the set-up and service of EuVECA and EuSEF funds throughout their lifecycle, please reach out to Yvar de Zwaan, our Senior Industry Leader, as per contact details below:

Yvar de Zwaan
Yvar.deZwaan@sgggroup.com
+31 20 522 24 69

Read our blog article for more details by clicking here: https://www.sgggroup.com/blog/relevant-developments-dutch-fund-industry