The Luxembourg government created a new type of fund vehicle in July 2016, the reserved alternative investment fund (fonds d'investissement alternatif reservé). The most important characteristic is that it is not subject to regulation by the Luxembourg Financial Sector Supervisory Authority (CSSF), although it must have an authorised manager. Furthermore, it benefits from the European marketing passport granted by the AIFM directive.

The manager of the RAIF may follow any kind of investment strategy, with no restrictions regarding eligible assets (e.g private equity,venture capital, green securities, loan origination and acquisition, any listed securities, micro-finance, social entrepreneurship funds, infrastructure, tangible assets, etc.). RAIFs whose investment policy is restricted to risk capital will not be required to follow-risk spreading rules.

Please download the below brochure for more details about the RAIF.

>> RAIF brochure (download) <<

Table of contents

  1. Introduction
  2. Key features
  3. What is the background to the establishment of the RAIF regime?
  4. What changes does the RAIF legislation bring to fund structuring options?
  5. How is a RAIF created?
  6. Who may manage a RAIF?
  7. What documentation and reporting requirements must a RAIF comply with?
  8. What regulatory oversight is a RAIF subject to?
  9. What investments may a RAIF undertake?
  10. What legal forms may a RAIF adopt?
  11. Can RAIFs have multiple compartments and share classes?
  12. What corporate rules apply to a RAIF?
  13. What are a RAIF's servicing requirements?
  14. Who may invest in a RAIF?
  15. What taxation is a RAIF subject to?

For any query, please contact:

Olivier Sciales

Chevalier & Sciales

Investment funds, partner

Email: oliviersciales@cs-avocats.lu

website: www.cs-avocats.lu

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.