Sign up to save your podcasts
Or
Share Reserved Alternate Investment Funds (RAIF) in Luxembourg
Share to email
Share to Facebook
Share to X
Share to email
Share to Facebook
Share to X
Or
Reserved Alternate Investment Funds (RAIF) in Luxembourg
This episode is also available as a blog post: https://10leaves.ae/publications/luxembourg/reserved-alternate-investment-funds-raif-in-luxembourg
What is a Luxembourg RAIF?
The Reserved Alternative Investment Fund was created following the implementation of the AIFMD. Structurally, it is a combination of the Specialised Investment Fund (SIF) and the Investment Company in Risk Capital (SICAR).
However, unlike the SIF and SICAR, the RAIF is not ordinarily supervised by the Luxembourg CSSF. This allows the fund to be launched quickly, since double-supervision is avoided. However, a RAIF would have to appoint a CSSF-regulated Fund Manager (AIFM).
The Luxembourg RAIF is very popular in the EU, and there are around 650 RAIF established as of 2020.
Can a RAIF be sold to all investors?
A Luxembourg RAIF can only be sold to qualified investors, which include institutions and professional investors.
In some cases, prospective investors can declare that they a) can invest a minimum of Euro 125,000 or obtain a confirmation from a credit institution, an investment bank or a management company, certifying their expertise, experience and knowledge in sufficiently judging and understanding the implications of an investment made in the RAIF.
View all episodes
By 10 LeavesThis episode is also available as a blog post: https://10leaves.ae/publications/luxembourg/reserved-alternate-investment-funds-raif-in-luxembourg
What is a Luxembourg RAIF?
The Reserved Alternative Investment Fund was created following the implementation of the AIFMD. Structurally, it is a combination of the Specialised Investment Fund (SIF) and the Investment Company in Risk Capital (SICAR).
However, unlike the SIF and SICAR, the RAIF is not ordinarily supervised by the Luxembourg CSSF. This allows the fund to be launched quickly, since double-supervision is avoided. However, a RAIF would have to appoint a CSSF-regulated Fund Manager (AIFM).
The Luxembourg RAIF is very popular in the EU, and there are around 650 RAIF established as of 2020.
Can a RAIF be sold to all investors?
A Luxembourg RAIF can only be sold to qualified investors, which include institutions and professional investors.
In some cases, prospective investors can declare that they a) can invest a minimum of Euro 125,000 or obtain a confirmation from a credit institution, an investment bank or a management company, certifying their expertise, experience and knowledge in sufficiently judging and understanding the implications of an investment made in the RAIF.