RAIF – Luxembourg parliament passes law for ‘Reserved Alternative Investment Funds’ (RAIF) on the 14th of July 2016 – a new Luxembourg-based option for structuring an Alternative Investment Fund

Luxembourg has a world-wide reputation for being a stable and innovative investment fund location. The Luxembourg parliament has now passed the RAIF Law, enabling the creation of a new and interesting investment structure. The Law for ‘Reserved Alternative Investment Funds’ will come into force three days after the forthcoming publication of this law in Luxembourg’s official journal.

Fund promoters benefit from the following advantages:

  • Time to market’ in the form of the planning, structuring and immediate launching of the Alternative Investment Fund without the need for prior permission from the CSSF
  • Right of use for the AIFM passport in the EU for certain groups of investors for marketing and distribution purposes

Overview of the significant fund-specific characteristics of the RAIF:

  • Exclusively for institutional, professional or expert investors with an investment of at least EUR 125,000, or those who can be classified as expert investors.
  • Mandatory inter-linkage with an accredited EU AIFM (with resulting indirect supervision of the RAIF through the AIFM’s supervision)
  • Structuring of Fund in well-known fund types (Umbrella or Single Funds) with flexible subscription and redemption options, various share classes, options for payouts and the design of the RAIF in various structures and legal forms (variable or fixed share capital):
    • Stock corporation (SA)
    • Special Limited Partnership (SCSp)
    • Partnership Limited by Shares (SCA)
    • Investment Fund without Legal Personality (FCP)
    • Limited Partnership (SCS)
    • Limited Liability Company (S.à r.l.)
    • Cooperative company organised as a stock corporation (société coopérative organisée comme une SA)
  • RAIF’s are subject to a Tax d’Abo of 0.01% p.a.; to the extent that the RAIF is only invested in risk capital, it is treated analogously to a SICAR for tax purposes; administrative and management services (e.g. those of the AIFM or of the custodian bank) carried out in direct service of an RAIF are not subject to VAT.
  • Requirements for the diversification of risk are in accordance with the Law of the 13th of February 2007 for Specialised Investment Funds (SIFs). Should the RAIF invest solely in risk capital, the requirements for the diversification of risk do not apply.

Why choose us?

We are accredited as Alternative Investment Fund Managers (AIFM) in accordance with Chapter 2 of the Law of the 12th of July 2013.
We are a reliable partner for the individual structuring and administration of Luxembourg-based investment vehicles and have the necessary expertise and administrative capabilities.
We offer you our expertise and our team of specialists. Owner-run and independent, we do everything we can to meet your requirements and preferences at all times.
We see ourselves as your long-term partner, who will stand at your side and provide the bridge for entry to the markets of the EU member states.

Talk to us!

Anja Richter                                                                            Björn Kogler
Member of the Management Board                                   Member of the Management Board
Tel. +352 276 912 23                                                             Tel. +352 276 912 32
anja.richter@mainfirst.com                                                   bjoern.kogler@mainfirst.com

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