Establishing A Luxembourg Fund: Engaging Luxembourg Fund Service Providers

The EU sponsor can choose to use a Luxembourg-based authorised third-party fund manager ("Host AIFM") for the fund's management. This option comes with an EU fund marketing passport, granting EU-wide access to institutional investors. Operating without a Host AIFM requires compliance with fragmented marketing and reporting rules across EU member states. Typically, the Host AIFM provides responsibility for compliance functions (risk management) and delegates buy and sell decisions (portfolio management) to the Sponsor.

To launch a Luxembourg fund, it is furthermore essential to appoint a domiciliation agent to register the fund at a Luxembourg address. This agent typically also provides board members, ensuring robust local governance. Both aspects are crucial for the fund to be recognised as a product governed by Luxembourg law and regulations. Additionally, the domiciliation agent usually supports the opening of a bank account and manages filings with the