Luxembourg law dated 23 July 2016 introduced a new tool in the (already quite large) range of vehicles existing in the Luxembourg fund industry: the Reserved Alternative Investment Fund. By implementing this new form of AIF, the Luxembourg legislator took a resolute step towards modernity and flexibility. Indeed, the originality of the RAIF lies less in its way of functioning (very similar to a SIF) or its tax treatment (though the Law organized an original dual tax regime either copied from the SIF or from the Venture Capital Investment Companies, depending on the investment strategy developed by the RAIF) than in the legally organised absence of supervision at the level of the RAIF itself. Indeed, the management of the RAIF having to be entrusted to a regulated AIFM, the CSSF’s supervision over this fund structure is limited to the AIFM itself. As a result, the delay for the actual implementation of such RAIFs is substantially shortened, compared to traditional Luxembourg forms of AIFs.
As a result, shortly after its introduction, the RAIF proved itself to be a successful way of establishing alternative investment funds in Luxembourg.
Please do not hesitate to contact us for more information as to how to implement your RAIF.