Private Investment Fund
The Private Investment Fund mechanism is used for the following purposes:
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Optimization of the ownership structure and consolidation of assets
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Creation of family capital funds
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Using a special tax regime
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The possibility of business functioning under sanctions
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Attracting business investments
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Rental business management
The main advantages of the Private Investment Fund:
Consolidation of ownership and management of different asset classes
Private Investment Fund is a modern analogue of a holding company and a convenient tool for combining disparate assets
It is recommended to use Private Investment Fund:
- In a situation where one business consistently generates profits, and another needs additional investments or loss coverage. Thanks to tax preferences, combining disparate assets allows you to balance profits/losses from different types of activities and significantly increase the return on existing assets
- Business partners who jointly own assets or projects for optimal management and profit sharing
- To mitigate risks and legal protection: the property of the Private Investment Fund cannot be foreclosed on the obligations of the shareholder, the Private Investment Fund provides protection against unfriendly takeover
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No income tax
Special tax regime. The income of the Private Investment Fund is not subject to income tax. Accordingly, a business aimed at capitalization and reinvestment of profits has the opportunity to dramatically increase its efficiency.
- Private Investment Funds have a number of advantages that make asset ownership more profitable, convenient and allow more efficient property management and reinvestment of 100% of the profit from the sale of assets.
- Tax legislation considers transfer of property or property rights (shares in the authorized capital, claims, etc.) into a mutual fund as an investment, without recognizing this operation as a realization, which in most cases does not create tax consequences for asset owners.
- Also, income received by the fund (from the sale of property or renting it out, dividends, interest and any other income) is not subject to income tax.
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Confidentiality of ownership
The owners of the assets of the Private Investment Fund are recorded not in public registers (United State Register of Legal Entities (USRLE), Unified State Register of Rights to Immovable Property (EGRP)), but in a closed register of shareholders
- Unlike business entities, the list of owners of which you can find in public state registers, information about the owners of investment units is not disclosed.
- And the Private Investment Fund for qualified investors does not disclose not only information about shareholders, but also the statements of the fund.
- Private Investment Fund for qualified investors is a special type of funds that have expanded investment, operational and management capabilities.
- This type of Private Investment Fund allows not only to limit information about the fund and shareholders as much as possible, but also to expand the investment declaration, attract and issue loans, and acquire assets of various types.
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Prohibition of foreclosure on the fund's property
The special advantages of the Private Investment Fund are asset protection and special legal capacity and securitization.
- A number of features make it possible to increase the security of assets when they are included in the Private Investment Fund: the impossibility of bankruptcy of the fund; prohibition of foreclosure on the assets of the fund for the debts of its Shareholders and manager;
- The owners of assets are recorded not in public registers (United State Register of Legal Entities (USRLE), Unified State Register of Rights to Immovable Property (EGRP), but in a closed register of shareholders;
- The legal separation of the investor-owner and management.
- The presence of an investment declaration in the Private Investment Fund and the separation of the Fund's property from the property of investors and their risks make the Private Investment Fund a convenient tool for securitization of assets, i.e., separation of property for the issuance of securities (increased liquidity), adapted, including for targeted investments, and refinancing of committed investments.
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Control over the activities of Management company and Private Investment Fund

Control of activities
- The management company is under the supervision of the Bank of Russia
- The assessment of the Fund's assets is carried out every 6 months by an independent appraiser
- All transactions with the Fund's assets and the calculation of the share value are subject to approval by an independent controlling organization – a specialized depository, also supervised by the Bank of Russia
General Meeting of shareholders
- The General Meeting of shareholders votes on key issues of the Mutual Fund (change of the management company, termination of the mutual fund, change of the rules of trust management, including the investment declaration)
Investment Committee
- It is possible only in the Private Investment Fund for qualified investors, if the rules of trust management provide for such an opportunity
- The Investment Committee approves all transactions of the Private Investment Fund - an analogue of the board of directors
- Depending on the goals of the structure and the wishes of the shareholder, the shareholder himself or persons appointed by him may participate in the investment committee
The composition of the fund's assets
The assets of the holding fund may include any assets, with the exception of cash.
At the same time, through a holding fund, it is most advisable to own assets that either have the property of bringing stable cash flow (dividends, interest, rent), or have the potential for value growth.
Real estate
Securities
Cash
Shares in companies
Precious metals
Loan claims
Software and hardware complexes (including data centers)
Intellectual property (including software)
The process of creation of the Fund
Road map for the formation of the Private Investment Fund
Duration (in working days)
The preparatory stage
1.Approval of the Rules of trust management with by shareholder
3 days
2.Assessment of assets transferred to pay for investment units
3-30 days
Stage 1 – registration of the Rules of Trust Management by the Bank of Russia
1. Approval of the Rules of the fund by a Specialized Depository
15 days
Entering the rules of the fund into the register of the Central Bank of the RF
1 day
Stage 2 - formation of the fund
1. Opening of current accounts of the Private Investment Fund (transit and Trust management account)
3 days
2. Provision by the shareholder of a package of documents according to the list of the Management Company (for passing the identification procedure, qualification, opening an account in the register)
1 day
3. Submission by the shareholder to the Management Company of a report on the valuation of assets transferred to pay for investment units
1 day
4. Sending by the shareholder to the Management Company of the application for the purchase of shares, documents for opening an account in the register of shareholders
1 day
5. Transfer of funds for payment of shares to the transit account of the Management company
1 day
6. Inclusion of property (cash + other assets) in the assets of the Fund, the issuance of shares
2 days
7. Signing of the report on the completion of the formation of the Private Investment Fund
1 day
The total number of days (excluding the time it will take the shareholder to prepare and submit documents to the Management company)
2-6 weeks