One of the most compelling use cases for AMCs is wrapping illiquid private assets, real estate, private equity, and private debt, into a bankable, ISIN-bearing security that can be held in standard custody accounts.
Real estate AMCs allow investors to gain exposure to real estate portfolios (direct equity, development projects, or mortgage-backed positions) through a single tradable instrument. The AMC structure avoids the complexities of direct real estate ownership.
Private equity AMCs enable co-investment structures, fund-of-fund access, or single-deal wrappers that provide ISIN-based access to PE opportunities. Investors can hold PE exposure through their existing bank custody setup.
Private debt AMCs securitise loan portfolios, commercial real estate debt, trade finance, SME lending, or structured credit, into a format that institutional investors can book and report on using standard infrastructure.
Luxembourg is the preferred jurisdiction for private asset AMCs due to its established securitisation law, flexible SPV framework, and deep service provider ecosystem for alternative assets.
Key structuring considerations for private asset AMCs include valuation methodology (independent valuers are typically required), NAV calculation frequency (monthly or quarterly for illiquid assets), liquidity provisions, and investor reporting standards.
The growing institutional demand for private asset exposure, combined with the operational efficiency of the AMC format, has made private asset AMCs one of the fastest-growing segments of the structured products market.
This article is for informational purposes only and is intended for professional investors. It does not constitute legal, tax, financial or investment advice, nor an offer of any security.