This article explores some of the challenges General Partners (GPs) face in setting up a Luxembourg Special Limited Partnership (SCSp) and how Ebury supports them.
Setting up a SCP and what are Blocking Certificates?
Launching a Luxembourg Private Equity fund typically involves the GP setting up a Luxembourg Special Limited Partnership (SCSp). Incorporating an SCSp requires the GP to provide the notary with a minimum capital certificate, confirming that the minimum required capital of at least EUR 12,000 is blocked and held in a Luxembourg based IBAN account to allow for the SCSp incorporation (known as “Blocking Certificates”).
To receive and hold the required funds, the financial institutions issuing the Bocking Certificate are required to onboard and perform Know Your Customer (KYC) on the entity that will be incorporated in the future. Once the SCSp is incorporated, the capital held is unblocked and available for use.
Challenges faced
Opening an account for an SCSp and issuing a Blocking Certificate is often time-sensitive, as the setting up of the fund cannot be initiated without it. Traditional banks in Luxembourg generally spread their onboarding capacity across their full client portfolio leading to an onboarding timeline between 12-24 weeks. The complicated processes and onboarding timelines are often not well suited to the requirements of Private Equity and Venture Capital.
Introducing Ebury Institutional Solutions
Regulated
Ebury Partners Belgium NV is authorised and regulated by the National Bank of Belgium as a Payment Institution. Ebury has then utilised the ability to passport its services throughout Europe and to all EEA member states. Ebury Partners UK Ltd is regulated as an Electronic Money Institution (EMI) by the Financial Conduct Authority (FCA) in the UK.
Industry knowledge
Having a global presence with institutional teams in 11 key jurisdictions, Ebury has a deep industry knowledge and a global network to provide funds with bespoke and end-to-end cash management, international payments and collections, and currency risk management services purpose-built for the alternative fund management industry.
Efficient onboarding process & blocking certificates
Ebury Institutional Solutions is an established alternative to the market and supported hundreds of incorporations in Luxembourg with Blocking Certificates over the past 5 years. With a team of dedicated experts, processes and technology, we have optimised the account opening process for the alternative fund management industry.
We aim to provide a blocking certificate in as little as 48 hours and a fully operational account in 14 days.
Let’s start a conversation
Get in touch with our experts to discuss the needs of your fund and how Ebury can help you. You can also visit our Institutions page to learn more about our services.
Disclaimer
Risk warning & legal notice: For informational purposes only; not financial, legal, or tax advice. Certain products, including derivative products, involve risk and may result in losses. Products and services described may not be available in all jurisdictions or from all Ebury entities; availability depends on the entity’s regulatory permissions and applicable local laws. Learn more about Ebury’s legal entities.
