Has Luxembourg Found The Middle Ground For Hedge Funds?

Prior to the much heralded roll out of the Alternative Investment Fund Management Directive (AIFMD) in 2013, Luxembourg was staunchly entrenched as the leading domicile for regulated mutual funds (UCITS) and private equity funds in Europe. It lagged in terms of attractiveness to alternative fund managers, with Cayman and BVI being the offshore domiciles of choice and Ireland stealing a march once AIFMD delivered a widely accepted European alternative product.

In recent times Luxembourg has taken numerous measures to enhance its offering for managers in the alternative investment space. The most recent measure is the introduction of the Reserved Alternative Investment Fund ("RAIF"). The RAIF was passed into Law in July 2016 and its unique features greatly enhance the product offering for managers structuring alternative funds in Luxembourg.