For investment funds, particularly within the private equity and real estate sectors, voluntary liquidation is a crucial process that allows for an orderly winding up of an investment vehicle while adhering to regulatory obligations. In Luxembourg, this process must be managed by experienced professionals to safeguard shareholders and address the complexities that often come with cross-border structures in these industries.

Understanding liquidations in the context of investment vehicles

Voluntary liquidation is a proactive decision made by the shareholders in coordination with the fund managers to dissolve an entity. The reasons behind this are often strategic, such as having met investment objectives, reaching the fund’s planned end, or restructuring assets.

The liquidation process typically occurs in phases, starting with the decision to dissolve the entity and the appointment of a liquidator, who is responsible for managing and realising remaining assets, settling outstanding debts, and distributing any residual funds to the shareholders. For more complex structures, like those in private equity and real estate, careful management of international assets and the coordination of multiple players is vital.

Local expertise with a global outlook

In Luxembourg, professionals with expertise in liquidating complex investment vehicles, like Value Partners, offer tailored support throughout the entire process. With over a decade of experience, we have managed more than 500 liquidations, particularly focusing on private equity and real estate structures.

As independent liquidators, we oversee every aspect of the process—from the initial dissolution to the final distribution of assets. We also liaise with tax authorities and other parties involved, ensuring full transparency and strict compliance to regulations.

A bespoke approach to every liquidation

Each investment vehicle is unique and requires a liquidation strategy that reflects its specific structure and objectives. Our approach includes managing multi-year liquidations, interim distributions of liquidation proceeds, and issuing clear reports to the shareholders. We also handle post-liquidation tasks, an important yet sometimes overlooked element that ensures all obligations are met.

Our team of experts, with extensive experience in dealing with complex cross-border structures, is dedicated to making the liquidation process as smooth and efficient as possible, fully aligned with legal and regulatory requirements.

Planning ahead for a smooth process

For fund managers, planning the liquidation of investment vehicles ahead of time can lead to better outcomes and a more efficient use of resources. Careful preparation, combined with support from experienced professionals, allows for the optimisation of returns while minimising risk.

Whether managing private equity or real estate investment vehicles, our team is here to support you throughout this essential process, ensuring that each liquidation is carried out under the best possible conditions.

To learn more about our liquidation services, please visit our Accounting & Corporate Services page.