Investment Fund Analysis & Strategy

Strategic questions to set-up an investment vehicle Regulated vs. unregulated - is this a real choice? • • · • Catch all definition of Alternative Investment Fund (AIF): "any undertaking for collective investment which raises capital from a number of investors with a view to investing it in accordance with a defined investment policy for the benefit of those investors and which is not a UCITS". Club deals: day-to-day discretion or control : "a form of direct and on-going power of decision over operational matters relating to the daily management of the undertakings' assets and which extends substantially further than the ordinary exercise of decision or control through voting at shareholder meetings on matters such as mergers or liquidation, the election of shareholder representatives, the appointment of directors or auditors or the approval of annual accounts" Holding: "a company with shareholdings in one or more companies, which carries out a business strategy through its subsidiaries, associated companies or participations, in order to contribute to their long-term value, and which is (i) either a company whose shares are admitted to trading on a regulated market in the EU; or (ii) is not established for the main purpose of generating returns for its investors by means of divestment of its subsidiaries or associated companies”. Operational company having a commercial purpose: "the purpose of pursuing a business strategy which includes characteristics such as running predominantly (i) a commercial activity, involving the supply of non-financial services, or (ii) an industrial activity, involving the production of goods or construction of properties, or (iii) a combination thereof" "Family offices” s.s. : pre-existing group : "a group of family members, that may be put in place by them to invest in an undertaking and provided that the sole ultimate beneficiaries of such legal structure are family members, where the existence of the group pre-dates the establishment of the undertaking. This shall not prevent family members' joining the group after the undertaking has been established" ELTIF: new vehicle from a tax perspective (since tax regime has been adopted in January 2022). It is a fully regulated AIF with a long term duration and which is closed-ended or semi-open-ended What type of investments? What type of investors? How to target them? PwC 11

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