Management companies of closed-end type collective investment entities (SGEIC): their regulation and the enlargement of their operational scope beyond the private equity and venture capital market

Management companies of closed-end type collective investment entities (SGEIC): their regulation and the enlargement of their operational scope beyond the private equity and venture capital market

Abstract:

Management companies of private equity and venture capital entities (SGECR) have been replaced by management companies of closedend type collective investment entities (SGEIC) as a result of the reform carried out by the Law 22/2014, of 12 November.

The operational scope of these new management companies has been enlarged, given that, in addition to the power to manage private equity and venture capital entities, also corresponds to them the management of closed-end type collective investment entities (EICC) created by the Law 22/2014, of 12 November.

This article describes the fundamental aspects of the legal regime of these management companies, putting them in context with other entities with which they share functions, such as management companies of collective investment schemes (SGIIC), among others. Specific issues of their management activity are discussed, such as liability vis-à-vis to unitholders and shareholders of the managed entities or remuneration of management.
It also discusses commercialization activities developed by management companies, distinguishing whether this activity aims to entities established in Spain, in another Member State of the European Union or outside this territory.

Keywords: Management companies of closedend type collective investment entities (SGEIC); private equity; venture capital; closed-end type collective investment entities (EICC); management companies of collect.