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  • Luxembourg is the globally trusted jurisdiction for successful fundraising efforts with a tax-transparent offering.
  • GMS+ as a director of your fundraising effort: excellence in everything from accounting to legal support, from banking arrangements to branding.
  • Securitisation is a very flexible tool for fundraising as well as technical purposes.

SECURITISATION IN LUXEMBOURG – YOUR PATH TO FLEXIBILITY, PRIVACY AND FUNDRAISING

Securitisation is highly beneficial to a savvy business owner/investor. This process turns an asset (or a pool of assets) into a security that may be effectively used by a business owner/investor (interested party) for a range of purposes, including wealth management and fundraising.

There are essentially two parts of the process:
Firstly, a business owner/investors transfers his ownership of an asset to a specialised Luxembourg-based company (SPV). The SPV, in turn, issues debt securities (e.g. bonds, notes, bills) backed by these very same asset. Effectively, this turns the asset into a financial instrument that may, moreover, carry an ISIN code allowing its instant worldwide trading.

Securitisation brings three clear advantages:

  • Liquidity. Securitisation turns the interested party’s interest in an asset into debt securities – financial instruments that can be held in bank custody, traded, lent, or borrowed. It can effectively be used for wealth planning or as a backing to gain access to credit facility.
  • Privacy & Protection. From a legal standpoint, as soon as the asset is transferred to the SPV, the interested party is no longer directly seen as the Beneficial Owner (BO). Yet thanks to the mechanics behind the SPV, the interested party may perform a flexible degree of control over the asset, whereas the party’s interests remain inherently protected by Luxembourg’s Rule of Law. This situation allows strategic protection of the asset against third party claims and a high degree of confidentiality.
  • Trustworthiness & Flexibility in Fundraising. Luxembourg’s Securitisation law of 2004 allows great discretion between the correlation of the bond and the asset (participation in profits, fixed-coupon note etc.). At the same time, the highest possible “AAA” rating of the Economy of Luxembourg and its Rule of Law make strong arguments for any successful fundraising efforts.

SECURITISATION AND FUNDRAISING

We offer quick-to-market solutions for your securitisation and/or fundraising efforts with possible placement of debt securities on markets such as Luxembourg, Hong Kong, Germany, Poland and others.

For serious, established businesses or entrepreneurs with a track record who seek an access to international capital, we coordinate a holistic effort to take your initiative and realize it as a well-prepared market placement within months.

SECURITISATION AND TAXATION

Like any corporate entity in Luxembourg, an SPV is subject to approximately 29% corporate taxation. Yet the investment income that an SPV owes its investors or creditors – usually payable as interests or dividends – is fully tax-deductible. So in practice, the SPV does not realise taxable profits, hence it does not incur corporate tax.

To top it off, as a resident company with full income-tax liability, an SPV is further entitled to benefit fully from Luxembourg’s extensive double tax treaty network, meaning that the SPV can accumulate funds from sources globally under advantageous conditions.

ABOUT GMS+ LUXEMBOURG FAMILY OFFICE

Founded by Jean-Luc Jourdan in 1999, GMS+ is a Multi-Family Office based in Luxembourg City. Over the last 18+ years, we have been diligently building up a team of specialists to cater to your most complex requests.

Comprehensive and holistic, we cover your needs: from family and personal goals to wealth and business finance projects such as securitisation and fundraising.

Our experts understand the exacting requirements of a UHNW clientele. Whilst subject to Luxembourg’s stringent privacy laws, the privacy of our clients is further assured by enforcing strict data management policies as well as providing our clients with an encrypted private communication and project management app.

BEGIN YOUR SECURITISATION / FUNDRAISING PROJECT TODAY

At GMS+, we treat your business with the same diligent care as our own. As we look to build a long-term, trusting relationship for years to come, we take your peace of mind very seriously.

To get started, let’s discuss your options together.

Chat with us now by simply clicking the red “LET’S TALK” button at the top-right corner or writing to +352621324923 on Telegram, Signal.

FAQ

  • What is the role of GMS+ in my fundraising efforts?

    GMS+ is the director of your fundraising efforts. With our decades-long experience in the banking, finance, trust and family office services, we will:
    – Help you determine the best structure for your securitisation and fundraising efforts
    – Actively assist in fundraising if required
    – Create a full set of accounting, legal and marketing materials by way of coordinated efforts between multiple specialists.
    – Open, create, manage an SPV, a securitisation company or a compartment.
    – Coordinate dematerialisation and depositary actions with a bank
    – Coordinate stock market placement when required.
    – Calculate, publish NAV.

  • How does this work in practice? What is the end result?

    A special company (SPV) is opened in Luxembourg that issues bonds in exchange for participation in a project/business. Because these bonds carry an ISIN number, they can be traded and held by virtually any person via a bank worldwide. By default, these bonds are only available to a professional investor public, but they can be made public and traded on a stock market if necessary.

  • How long does the securitisation process take?

    The whole process usually takes between 2 and 6 months.

  • What is the advantage in fundrising through Luxembourg ?

    Luxembourg has a very robust banking, financial and legal system and is the world leader in eurobond emissions. The sheer vetting of your project by a Luxembourg depositary bank is an excellent symbol of trust internationally and facilitates fundraising efforts. Furthermore, Luxembourg provides access to an impressive Double-Tax Avoidance Treaty list which is crucial in providing tax transparency for your fundraising efforts.

FAQ

  • What is the role of GMS+ in my fundraising efforts?

    GMS+ is the director of your fundraising efforts. With our decades-long experience in the banking, finance, trust and family office services, we will:
    – Help you determine the best structure for your securitisation and fundraising efforts
    – Actively assist in fundraising if required
    – Create a full set of accounting, legal and marketing materials by way of coordinated efforts between multiple specialists.
    – Open, create, manage an SPV, a securitisation company or a compartment.
    – Coordinate dematerialisation and depositary actions with a bank
    – Coordinate stock market placement when required.
    – Calculate, publish NAV.

  • How does this work in practice? What is the end result?

    A special company (SPV) is opened in Luxembourg that issues bonds in exchange for participation in a project/business. Because these bonds carry an ISIN number, they can be traded and held by virtually any person via a bank worldwide. By default, these bonds are only available to a professional investor public, but they can be made public and traded on a stock market if necessary.

  • How long does the securitisation process take?

    The whole process usually takes between 2 and 6 months.

  • What is the advantage in fundrising through Luxembourg ?

    Luxembourg has a very robust banking, financial and legal system and is the world leader in eurobond emissions. The sheer vetting of your project by a Luxembourg depositary bank is an excellent symbol of trust internationally and facilitates fundraising efforts. Furthermore, Luxembourg provides access to an impressive Double-Tax Avoidance Treaty list which is crucial in providing tax transparency for your fundraising efforts.

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