On 21 February 2008, the Luxembourg government has introduced a draft law aimed to make more attractive the SICAR vehicle to private equity and venture capital investors.
Brief overview of the main changes proposed in the draft law:

• introduction of possibility to create multiple compartments (as is already the case for the Luxembourg specialized investment fund (SIF) vehicle;
• share premiums will be taken into account for the computation of the minimum capital (share capital + share premium must be at least 1,000,000 Euro)
• no requirement to publish NAV of its assets;
• obligation to publish annual report within 6 months following the end of the accounting year;
• lighter requirements imposed upon custodian (the SICAR regime will be aligned on the SIF regime as to that). Consequently, the annual running costs of the SICAR will be reduced;
• the assets of the SICAR will have to be valued at fair market value;

Please contact Olivier Sciales or Rémi Chevalier should you have any further questions.