The Luxembourg government announced the launch of a new form of Alternative Investment Fund called the "Reserved Alternative Investment fund" (RAIF). Unlike the SIF, the RAIF will not need approval by the Luxembourg supervisory authorities (CSSF) and will not be subject to any direct supervision.
What is it?
The RAIF will qualify as an AIF and is to be managed by an Alternative Investment Fund Manager (AIFM). Because the AIFM is supervised by the CSSF, the RAIF itself does not have to be regulated. It will though have similar characteristics to a SIF or SICAR.
Why?
Luxembourg professionals have worked with the government to offer investors a more flexible investment vehicle to manage their investment strategies while reducing the time to market of the incorporation and launch process. The RAIF will continue to benefit from the existing characteristics of current regulated funds.
When?
The RAIF should be available mid 2016 subject to enactment of the draft law within parliament.
How can we help?
We are an experienced provider of administration services to both regulated and unregulated structures. With the RAIF being a hybrid investment vehicle we have the proven capabilities to guide our clients in launching this new product.
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.