The investment company is that collective investment institution that acquires legal personality to attract assets with which to generate income.
The investment company takes legal personality as a corporation in order to assume funds, assets, money, securities with which to manage and invest in turn generating new returns for the constituents of the company.
These companies are usually made up of private and institutional investors of a certain level that come together to pool assets and resources with which to generate returns that individually could not be accessed and will be more limited.
These companies usually focus on investing in very specific sectors, such as the financial, real estate and debt markets, which is why there are companies that group investors whose purpose is to invest in stocks, funds and derivatives ; those companies destined for the real estate sector, either for the sale or purchase of real estate or for the exploitation of these through rentals; or investment in debt instruments, mainly public debt and corporate debt of large companies (loans).
Investment companies are made up of medium-sized and specialized companies in some section of the field in which they operate, but which need others to achieve greater investments.
Two types of investment company
Within investment companies, there are two more widely known and employed types:
- Variable Capital Investment Companies: are public limited companies intended for the acquisition, holding, enjoyment, negotiation and sale of securities and other movable assets. You need a minimum capital of 2.4 million euros and a minimum of 100 individual partners.
- SOCIMI: they are investment companies in real estate capital. In this case they are companies whose corporate purpose is the exploitation of real estate to obtain income through the lease, not being able to carry out promotion and sale of real estate. For this reason, the purchase of land, buildings and others is not allowed, but the restoration for rent and the holding of real property rights are allowed.