Luxembourg Introduces Multi-compartment Structures For Unregulated AIF Limited Partnerships

A major legislative development for private fund structuring

On 30 July 2026, the Luxembourg government submitted bill of law No. 8814 (the Bill) amending the law of 12 July 2013 on alternative investment fund managers, as amended (the AIFM Law), to allow SCS and SCSp qualifying as alternative investment funds (AIFs) and not being subject to a special fund regime to adopt a multi-compartment structure, provided they are managed by a Luxembourg-authorised AIFM or by an AIFM authorised in another EU Member State under the alternative investment fund managers Directive as amended (AIFMD).

This represents one of the most significant structural enhancements to Luxembourg's private fund toolkit in recent years. For the first time, sponsors and fund managers will be able to consolidate multiple investment strategies, investor classes, or fund-level structures within a single unregulated limited partnership — without having to resort to a special fund regime. The practical consequences