News

Private Funds – Vinge forms new practice group for fund formation in Sweden

October 03, 2022

Historically, private equity firms have often managed their funds from abroad. More recently, there has been a clear reversal of this trend in favour of repatriating the management of funds and establishing funds as Swedish limited companies. Vinge has formed a new Private Funds practice group in order to be in a better position to advise in conjunction with Swedish fund formations.

According to Mattias Schömer, partner at Advokatfirman Vinge, there are several reasons why private equity managers have shifted to move the management to Sweden:

 

“There is now confidence among private equity firms and investors that Swedish legislation within the corporation and taxation fields is both long-term and stable. We also see from various external sources, from the European Union, different public authorities and investors, that there is a demand that funds and private equity firms should be taxed in the country from which the majority of their business is conducted. Finally, many of the private equity firms which have chosen to establish funds in Sweden have produced great returns, which is an acknowledgement that the Swedish model delivers”, says Mattias Schömer.

 

One positive result of the Swedish model is that private funds are from a corporate perspective completely transparent since they now act as Swedish limited companies.

 

“To establish funds in Sweden is a safe alternative in a rapidly changing tax and regulatory climate, which provides opportunities to focus on the business instead of structural issues”, says Mattias Schömer who, in his capacity as a pioneer in the field, created the first Swedish AB fund structures for private equity managers.

 

The market for such small and medium sized private equity funds, with capital commitments within the sphere of SEK 2 – 10 billion, has now grown to such degree that Vinge has chosen to form a new practice group headed by Mattias Schömer. Together with Martin Cronsioe and Marcus Andersson, newly recruited from the AP funds, Mattias Schömer will manage and develop the new Private Funds practice group.

 

Vinge authors the Swedish contribution regarding tax disputes for The Legal 500

International companies run the risk of the erroneous management of tax issues when conducting operations in several jurisdictions. In such event, disputes can arise with the relevant tax authorities. The Legal 500 has now introduced a dedicated chapter on tax disputes in its comparative guide for the first time and Ulrika Bengtsson, advokat and counsel, has been selected to provide a clear picture of the Swedish tax litigation system.
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The wide reach of the prohibition against circumventing EU sanctions

Against the background of Russia’s invasion of Ukraine, the EU has imposed a number of sanctions, which include a prohibition for companies within the EU to take certain measures in relation to Russia, as well as designated Russian people and entities on the sanction lists. Furthermore, a prohibition to circumvent the sanctions has been introduced in order to ensure that the sanctions are effective also in practice. When it comes to this circumvention prohibition, it is important to be aware of its wide interpretation, as established by the Court of Justice of the European Union and the European Commission.
October 31, 2022

Sanctions update 14 October

Further to our previous sanctions updates of 25 February, 3 March, 11 March, 16 March , 14 April and June 8 and 22 July, we herewith provide a further update of recent sanctions developments following Russia’s war against Ukraine:
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