In 2003, Belgium introduced an unlisted, closed-end investment fund ("the private privak") which, due to its corporate and tax features, was intended to encourage Belgian and foreign investment in unlisted Belgian or foreign companies. The purpose of the vehicle was to enable the investment of private equity through an unlisted company, without the need for investors to set up and manage their own company for an indefinite period of time.
In the Summer Agreement 2017, the Belgian government decided to make the private privak more attractive by aligning it more closely to comparable foreign investment funds. To this end, the Act of 26 March 2018 ("the Act") amends both the corporate and tax treatment of the private privak in order to make the vehicle more attractive for investment in private equity and growth companies.
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