Venture capital: significant progress in Monegasque regulations

The Principality of Monaco has just completed its regulations in order to allow the creation and development of venture capital funds.

Much awaited by professionals in the market, this new mechanism will enable the Principality to expand its investment offer.

Venture capital consists of taking equity stakes in the capital of unlisted companies, with the aim of achieving profitability in the medium and long term.

According to Monegasque regulations, a fund is said to be a venture capital fund when its assets consist mainly of securities enabling it to invest directly or indirectly in unlisted companies or companies admitted to trading on one of the regulated growth value markets of the Organisation for Economic Cooperation and Development.

It is now possible to establish a venture capital fund in Monaco with a minimum asset size of € 300,000.

Ministerial Order No 2020-71 of 29/01/2020 on venture capital funds specifies in particular the procedures for declaring a venture capital fund, its formation and the composition of its assets, as well as the conditions for the subscription, redemption and disposal of its shares and its valuation.

It supplements Sovereign Order n°1.285 of 10/09/2007 implementing Act n°1.339 of 07/09/2007 relating to mutual funds and investment funds.

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