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.
