Launching a Listed Closed-ended Fund in the EU

March 02, 2015

This guide considers some of the key issues a manager should consider in launching a closed-ended fund to be listed on an EU investment exchange. Closed-ended funds do not generally offer redemption to investors nor issue significant new interests after admission, other than via organised placings or new issue “rounds”. They generally have the ability to retain, rather than distribute, capital gains. Typically, such funds are in corporate form and may be established onshore or offshore. Most closed-ended funds which retain their capital gains will look to listing on a liquid EU stock exchange to grant investors liquidity over their interests.

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