EUROPEAN VENTURE CAPITAL FUNDS (EUVECA).

European law lays down a diversity of rules for undertakings for collective investment which operate on the principle of risk-spreading. First tier of legislation regards undertakings for collective investment in transferable securities (UCITS) which are tailored for low-risk appetite (Directive 2009/65/EC of the European Parliament and of the Council on the coordination of laws, regulations and administrative provisions relating to undertakings for collective investment in transferable securities). Such undertakings provide a way of investing money alongside other investors in transferable securities or in other liquid financial assets. UCITS distributes units or shares which are, at the request of holders, repurchased or redeemed, directly or indirectly, out of those undertakings' assets. Such UCITSs may be constituted in accordance with contract law (as common funds managed by management companies) or statute (as investment companies). Second tier of legislation regarding collective investment comprises alternative investment funds (AIFs), with a large rage of juridical forms and repurchasing options. A specific type of AIF is European venture capital fund (EuVECA). European law reserves designation 'EuVECA' in relation to the marketing of venture capital funds in the Union. Qualifying venture capital fund with qualifying investments are established for the delimitation of these entities (EuVECA). [Regulation (EU) no. 345/2013 of the European Parliament and of the Council on European venture capital funds]. [ABSTRACT FROM AUTHOR]