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ARTICLE · 22 DECEMBER 2015

RAIF: A New Luxembourg Fund Structure

DMS Governance Ltd
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The Luxembourg government plans to introduce a new alternative investment fund (AIF) – the Reserved Alternative Investment Fund (RAIF) – which was presented in draft law to the Parliament on Monday, December 14, 2015.

LuxembourgFinance and Banking
DMS Offshore Investment Services
DMS Offshore Investment Services
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The Luxembourg government plans to introduce a new alternative investment fund (AIF) – the Reserved Alternative Investment Fund (RAIF) – which was presented in draft law to the Parliament on Monday, December 14, 2015. It is expected to 'go live' in Q2 2016, if approved.

The RAIF is modeled on Luxembourg's specialized investment fund (SIF), and maintains several elements of SIF including creation of compartments EU passport for marketing its interest, shares or units, full flexibility of legal forms and no limitations in terms of investment policy.

However, the RAIF will not require prior approval or supervision from the Commission de Surveillance du Secteur Financier (CSSF), provided that it complies with AIF requirements and is managed by a regulated Alternative Investment Fund Manager (AIFM). RAIFs can therefore be set up within days, ensuring greater efficiency and speed to market.

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