|Business Model and Financial Projections
|Marketing and Sales Strategy
The goal of a business pitch is to convey a compelling and persuasive narrative that captures the attention and interest of the audience, ultimately leading to the desired outcome, such as securing funding, forming partnerships, or gaining new customers.
- The Luxembourg securitisation law provides a robust and flexible legal framework for securitisation transactions, which involve the transfer of assets, such as loans or receivables, to a separate entity (special purpose vehicle or SPV) that issues securities backed by those assets. The law aims to facilitate securitisation activities in Luxembourg and attract securitisation vehicles to establish themselves in the country.
- The law allows for the establishment of Luxembourg-based SPVs, which are separate legal entities used for securitisation transactions. These SPVs can be structured as companies or other legal forms and benefit from specific legal provisions that facilitate their operations.
- The law provides a legal framework for the transfer of assets from the originator to the SPV. It sets out rules for the isolation and ring-fencing of the securitisation assets to protect them from the originator’s insolvency or other risks.
- The law includes provisions to safeguard the interests of investors in securitisation transactions. It requires appropriate disclosure of information to investors, including details about the securitisation assets, risks involved, and any structural features of the transaction. It also covers issues related to the representation and administration of investors’ rights.
- The law establishes a regulatory framework for securitisation vehicles. The Commission de Surveillance du Secteur Financier (CSSF) serves as the supervisory authority overseeing securitisation activities in Luxembourg. The CSSF is responsible for granting authorisations, ensuring compliance with applicable regulations, and supervising the ongoing activities of securitisation vehicles.
- Luxembourg provides a favorable tax environment for securitisation transactions. Certain tax exemptions and benefits are available to securitisation vehicles, subject to meeting specific conditions. These provisions aim to attract securitisation transactions to Luxembourg and encourage their development.
- The EuSEF and EuVECA regulations apply to EU managers that are subject to registration with the competent authorities of their home Member State in accordance with the AIFM Directive and manage qualifying venture capital funds with total AuM of less than EUR 500 million.
- The regulation aims to encourage investment in social enterprises by establishing a new type of fund called European Social Entrepreneurship Funds (EuSEFs). These funds focus on investing in social businesses that have a positive social impact alongside financial returns.
- EuVECA and EuVECA funds enjoy certain regulatory advantages, such as exemption from certain requirements and burdensome obligations that apply to other types of investment funds. These include exemptions from certain capital requirements, leverage limitations, and certain provisions of the Alternative Investment Fund Managers Directive (AIFMD).
- EuSEF and EuVECA can raise capital from both professional and retail investors across the European Union. Retail investors are subject to certain investment limits and must receive a simplified disclosure document to understand the nature and risks associated with EuSEF and EuVECA investments.
- EuSEF and EuVECA benefit from certain regulatory advantages, such as a marketing passport that allows them to raise capital across EU member states without needing to comply with additional national regulations. They also receive a European label, which enhances their visibility and credibility among investors.
- EuSEF and EuVECA are supervised by national competent authorities in each EU member state where they are marketed. These authorities are responsible for ensuring compliance with the EuSEF Regulation and may impose sanctions for non-compliance.
- EuSEF and EuVECA are required to provide regular reports to investors and the competent authorities, disclosing information on their investments, social impact, and financial performance. This promotes transparency and accountability.