Investment funds in Spain can be registered as
open-ended or
closed-ended. In many aspects, the two
types of funds are rather similar, but they are very different in terms of the rights investors have in certain situations, such as
issuing stocks or shares. In this sense, the
closed-ended funds are restricted from issuing an unlimited amount of shares. However, the
capital of a closed-ended fund is collected in a similar manner as in the case of
open-ended funds, which is performed through an
initial public offering. Businessmen who are interested in
setting up a company in Spain can receive assistance on this matter from
our team of specialists in company formation.
Closed-ended alternative investment funds in Spain
A way in which a closed-ended investment fund can be set up is by following the regulations of the Alternative Investment Funds (AIFs). Closed-ended AIFs are regulated by the Law 22/2014, which refers to a wide category of closed-ended funds following the rules of law established by the European Union’s directives.
Another difference between the two types of structures also takes into account the
legal forms the
fund can take.
Closed-ended funds in Spain can be registered as:
• private equity entities;
• private equity companies.
Under the regulations of the Law 22/2014, closed-ended funds can also be registered as:
• closed-ended collective investment entities;
• closed-ended investment funds;
• closed-ended investment companies.
Authorize a Spanish closed-ended investment fund
As a general rule, the
closed-ended investment funds must receive authorization in
Spain. However, similar structures registered in a country which is a member state of the European Union do not require obtaining any authorization from the
Spanish institutions, under the regulations of the European passport.