The law of 12 July 2013 relating to alternative investment fund managers ('AIFM Law'), which implements the EU AIFM Directive (2011/61/EC) in Luxembourg, entered into force on 15 July 2013.

Le 11 juin 2013, la Chambre des députés luxembourgeoise a voté une loi instaurant un droit de revendication en faveur de la personne qui a confié des biens meubles "incorporels" non fongibles à une entreprise qui est tombée en faillite (le dossier parlementaire peut être téléchargé ici).

In the years that preceded the financial crisis in 2008, private equity sponsors could easily find priced leverage financing. The most typical type of investment that was carried out, particularly in 2004 and 2005, consisted in a direct investment with an amount of maximum 15% for equity stake (found after having launched an off-shore investment fund), and generally 85% of hybrid instruments also reserved to stakeholders.

Introduction

On July 3 2012 the Prospectus Revision Law was passed, which:

On 3 July 2012, the Luxembourg Parliament approved a new act on squeeze-outs and sell-outs of securities issued by companies currently or formerly listed on a regulated market in the European Union (Bill 5978) (the "Act").

On 11 November 2010, the European Parliament – after extensive discussions – adopted the draft directive on managers of alternative investment funds. Although particularly aimed at regulating hedge funds and private equity funds, the directive has a much broader scope, providing for far-reaching changes in the supervision of all investment institutions other than UCITS. The directive, which is expected to come into force early next year, will bring about major changes in the supervisory regime for investment institutions.