MALTA Law and Practice Contributed by: Dr Josef Cachia Fenech Gonzi and Cherise Abela Grech, GTG Legal
a unified label. This Regulation aims to facili - tate cross-border fundraising and investment in SMEs. As an alternative to the heavily regulated AIFs, Malta offers the local PIFs, which are special - ised collective investment schemes governed by the ISA, designed for professional and high net worth investors. They offer a less regulated alter - native to retail investment funds, which make them attractive for non-traditional investments. To qualify, investors must commit a minimum of EUR100,000 and meet specific financial cri - teria, including possessing net assets exceed - ing EUR750,000 or being a senior employee or director of a service provider to the PIF. Malta also offers two streamlined fund struc - tures for non-retail investors; these are the Noti - fied Professional Investor Fund (NPIF) and the Notified Alternative Investment Fund (NAIF). NPIFs were introduced by the MFSA and were designed to complement Malta’s existing fund structures, particularly benefiting sub-threshold asset managers. On the other hand, the NAIF framework provides an expedited route for AIFs Malta’s VC landscape has experienced signifi - cant growth, marked by strategic initiatives and evolving fund structures aimed at fostering inno - vation and accommodating extended invest - ment horizons.These include the following. • Government-backed VC funds: in September 2023, the Maltese government introduced a EUR10 million Venture Capital Fund to pro - vide equity investments in innovative technol - ogy start-ups. Managed by Malta Govern - ment Investments through Malta Government Ventures, this fund targets sectors such as to enter the market. 2.4 Particularities
video game development, fintech, e-sports, life sciences and green energy. Eligible start- ups can receive up to EUR500,000 in equity investment, with plans to support approxi - mately 20 companies over two years. • Special Limited Partnership Funds (SLPFs): in February 2025, the MFSA introduced the Special Limited Partnership Fund framework. This structure allows for Collective Investment Schemes structured as Limited Partnerships without separate legal personality, offer - ing flexibility and tax efficiency. SLPFs are particularly suited for private equity and VC funds, providing a versatile vehicle that aligns with international best practices. • Malta Private Equity and Venture Capital Association (PEVCA Malta): launched in March 2024, PEVCA Malta aims to promote and support the development of the private equity and VC industry in the country. By bringing together investors, fund managers and service providers, the association seeks to enhance Malta’s profile as a destination for private equity and VC activity. • Fund strategies for extended holding periods: to address extended average holding periods for investments, Maltese VC funds are adopt - ing several strategies. Utilising frameworks like SLPFs allows for customisable govern - ance arrangements and profit-sharing mecha - nisms, accommodating longer investment horizons. • Continuation funds: while specific data on continuation funds in Malta is limited, the evolving regulatory environment and the introduction of flexible structures like SLPFs may facilitate the establishment of such funds to manage assets requiring extended holding periods.These developments reflect Malta’s commitment to nurturing a dynamic VC ecosystem, supporting innovation, and
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