This new Luxembourg product was thought to meet the current needs and requirements of the Fund market.
This new vehicle presents lots of similar points with Luxembourg SIFs or SICARs, respectively, Special Investment Fund and Capital risk fund. The legal framework of the Reserved Alternative Investment Fund allows the same flexibility, but add the speed for its creation, as it doesn’t need to be approved and is not supervised by the CSSF, the Luxembourg Financial regulator.
To ensure the sufficient protection and regulation via its manager, the RAIF must be managed by an external alternative investment fund manager (AIFM), who can be domiciled in Luxembourg or in any other EU member state.
This completes the tool box offered by Luxembourg for promoters and well-informed investors, who have thus at their disposal a new option for structuring private equity, real estate, hedge funds and other types of alternative investment strategies.