Funds

As an investor, you know that capital markets are becoming more complex wth every year and setting up funds licensed by the Bank of Lithuania are a time-consuming and resource-intensive task. However, there is one important variable that can mitigate this process: a successful legal partnership. 

It is important to initially stress that the Lithuanian legal framework requires a clear and robust fund structuring strategy. This includes not only the legal documents, but also their alignment with EU legislation, in particular with regard to the Directives on Undertakings for Collective Investment (UCITS) and Alternative Investment Fund Managers (AIFMD). In addition, it is essential to align the structure of the fund with the tax policy, which can have a direct impact on the profitability of the fund.  

Moreover, Lithuanian regulators set high standards for fund managers. This means that fund managers must be prepared to provide detailed information on their activities, strategy and financial position in order to obtain a licence. 

Before this backdrop, we will ensure that your fund is ready to compete effectively in both domestic and international markets. 

In the mid-20th century, as global markets became increasingly interconnected, the concept of international investment became popular. Over time, foreign investment funds have become a key part of many investment portfolios, offering the opportunity to diversify and take advantage of global growth opportunities. 

Prevence lawyers have experience in managing complex offshore fund management projects. We will therefore help you to carry out in-depth market research prior to set-up, to identify which country or region offers the best regulatory and tax environment, and to select the most appropriate fund structure for the target investor base. 

After incorporation, we continuously advise clients on the ongoing management of the fund’s activities and suggest changes to capital allocation where we deem it necessary or more effective. 

The legal landscape and nuances of the fund industry demand intricate understanding of how funds operate.   

Our lawyers leverage their extensive expertise in this area to assist fund promoters in drafting governance documents that clearly define the relationship between the investor and the desired fund in question. We advise on a wide range of issues relating to the establishment and management of funds, including membership agreements, repayment terms and other investment agreements. We also advise on the processes of transferring investor interests and a profitable exit strategy.