Seeking Cost-Effective Solutions for Invoicing Performance Fees for Luxembourg SCSp

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gatrader

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Dec 5, 2021
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A Luxembourg-based SCSp that earns profits from forex trading (100/200k yearly) is seeking the best solution for quarterly invoicing of performance fees, which represent 50% of the profits. The trader, who manages the investments, resides in a tax-free country where obtaining a fund manager license is not possible, despite being a financial consultant.

The trader is open to setting up an entity abroad (regulated or not) specifically for invoicing purposes, but it must be a solid and reliable solution that is not overly expensive, given Luxembourg's strict audit requirements.

Any recommendations or insights into viable options, whether involving a regulated fund or another approach, would be greatly appreciated.

Thank you for your suggestions and guidance.
 
That sounds like a promising solution. I suppose I should check with a Luxembourgish lawyer to confirm?
 
Yeah I'm digging into that and I've noticed that under the 1915 Law, the SCSp allows for significant flexibility in how profits are distributed among partners. The partnership agreement (Articles of Association) can specify any arrangement for profit sharing, including compensating a partner through direct profit allocations.

I'll need to find a lawyer now who can validate this theory tough.
 
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