SWEDEN Law and Practice Contributed by: Björn Wendleby, Rico Benavides, Per Josephson and Stellan Koch, Harvest Advokatbyrå
1. Market Overview 1.1 State of the Market
support both local and international investment opportunities. Sweden’s stability, regulatory effi - ciency and focus on innovation provide distinct advantages for many fund managers. Sweden is a competitive and attractive option for fund formation and investment, offering a supportive environment for sustainable and innovative financial activities. 2. Alternative Investment Funds 2.1 Fund Formation 2.1.1 Fund Structures Alternative investment funds (AIFs) can take the legal form of a so-called special fund, a com - mon contractual fund or an association, such as a limited liability company, trading partner - ship or limited partnership ( kommanditbolag ). Whether an association constitutes an AIF is, however, determined based on the object of the association – ie, if the object meets the criteria of an AIF pursuant to Article 4 of the Alternative Investment Fund Managers Directive (AIFMD; 2011/61/EU). In Sweden, real estate funds and private equity funds are commonly structured as limited liabil - ity companies or limited partnerships. AIFs are regulated by the Swedish Alternative Investment Fund Managers Act (AIFMA; lag (2013:561) om förvaltare av alternativa inves - teringsfonder ), which primarily governs AIF managers (AIFMs). Additional regulation of AIFs is provided under the regulations of the Swedish Financial Supervisory Author - ity (SFSA; Finansinspektionen ) regarding AIFMS ( Finansinspektionens författningssamling (FFFS) 2013:10).
Sweden is a prominent and highly regarded jurisdiction for investment fund formation and management, recognised for its stability, trans - parency and investor-oriented policies. With a well-established legal framework and govern - ance standards, it offers an environment con - ducive to both domestic and international fund activities. The Swedish investment fund market is mature and diverse, with over 80% of fund assets being managed locally. The Swedish investment funds market has evolved to cater to institutional and retail investors, encouraging financial inclusion and supporting economic development. Swed - ish fund-based saving plays a vital role in house - hold financial planning and pension systems, underscoring its integration into the broader economy. Sustainability is a hallmark of the Swedish financial sector. Fund managers are at the fore - front of incorporating environmental, social and governance (ESG) criteria into their strategies, aligning with Sweden’s strong commitment to green finance and EU-wide sustainability goals. This emphasis has made Sweden an appealing option for investors prioritising ethical and sus - tainable investment opportunities. Sweden’s regulatory landscape is designed to balance investor protection with operational flexibility, offering an efficient and reliable plat - form for fund managers to operate on. Sweden’s robust domestic investor base, includ - ing pension funds, insurers, family offices and private investors, plays a key role in its fund - raising landscape. These stakeholders actively
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