Most Read Contributor in Luxembourg, February 2017
On 14 July 2016 Luxembourg added the eagerly awaited Reserved
Alternative Investment Fund (RAIF) to its alternative investment
fund structuring toolbox.
The new RAIF is very familiar as it borrows interesting features
from both the SIF and the SICAR regimes. The investments must
respect the same risk-spreading rules as the SIF (a maximum 30% in
any asset) except if the RAIF invests solely in Risk Capital in
which case the RAIF can invest up to 100% in one asset. However,
unlike the SIF and the SICAR, the RAIF is not subject to any
approval or ongoing supervision by the CSSF. Investor protection is
built on the premise that only authorised AIFMs will be allowed to
establish and manage the RAIF giving investors a high level of
protection and transparency through the rules that the AIFM has to
respect. We expect the RAIF to be particularly appealing to
sophisticated investors who are looking for a robust structure to
quickly seize investment opportunities and who are comfortable with
the regulation of the Manager without direct regulation and
supervision of the Fund.
The RAIF's most interesting characteristics are as
Structuring flexibility: the RAIF can be set up as a
partnership, an investment company, or a contractual fund, either
as a stand-alone or umbrella fund and with the possibility to set
up several share classes.
Access to the AIFM marketing passport: the RAIF can be managed
by an authorised AIFM established in any EU Member State or in a
third country qualifying for a future AIFM passport regime, with
access to a marketing passport for professional investors across
Taxation: the RAIF will be subject to a subscription tax of
0.01% of NAV, with exemptions available for certain Money Market
Funds, for funds dedicated to pension fund investors, and for
microfinance funds. RAIFs that invest exclusively in Risk Capital
will be subject to income tax with exemptions for income derived
from transferable securities.
Transparency to investors: the RAIF must issue an Offering
Document that satisfies the AIFMD transparency requirements. It
must also produce an annual report audited by an Approved Statutory
Auditor, within six months of year-end.
The RAIF is able to be converted into a SIF or a SICAR.
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
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As the banking industry continues to be shaped by technological and regulatory forces, we’ve gathered our European Central Bank (ECB) experts to hold a conference about this changing landscape. KPMG’s ECB desk from Frankfurt will join our Luxembourg banking partners to unpack the latest news from the ECB, including regulations that will affect the future of banking.
We would be very pleased if you could attend this event, which will be held at our Luxembourg headquarters in Kirchberg on 30 March. The talk will begin at 5:00pm and last until 6:00pm, at which point the evening will be turned over to a networking session with drinks.
Please let us know if you are able to attend by using the registration button above (by 27 March, if possible).
We look forward to seeing you there!
Here in Luxembourg, LPEA are holding an event which will offer new initiatives by bringing General Partners (GPs) and Limited Partners (LPs) together to examine and speak on the industry from the “360” perspective, leaving no stone unturned. We are a sponsor of the event, as well as having a speaker present. David Capocci, Partner and Head of Alternative Investments will be offering his own insight on the industry nowadays.
Over the last 40 years, the Cayman Islands has matured into one of the world's most sophisticated and successful international financial centres, providing a competitive, effective, transparent, cost-efficient and tax-neutral platform for international capital flows underpinned by an environment of legal, political and economic stability.
UCITS are permitted to invest up to 100% of their assets in other open-ended collective investment schemes ("CIS") where those CIS are:
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