Reserved for institutional or well-informed investors
The RAIF is an unregulated fund dedicated to institutional and well-informed investors, (institutional, professional investor under MIFID or private investors who wish to invest a minimum of EUR 125.000).
A large range of eligible assets
The RAIF may adopt any fund strategy and invest in any eligible alternative assets among which:
- private equity
- hedge funds
- real estate
- arts or other collectibles
- bonds, shares long only
- derivatives, options, futures, etc
- infrastructure, green energy
- feeder into other funds
- fund of funds
- venture capital
- currency, metals, …
- Lending, credit,
Alternative Investment Fund Manager (“AIFM”)
The RAIF must be managed by an supervised AIFM (based in Luxembourg or in another EU Member State). The AIFM will then ensure that the RAIF complies with all requirements of the Alternative Investment Fund Manager Directive (“AIFMd”).
The AIFM may also create an investment committee with the members of the board or the promoters.
As the AIFM regulation and its investor protection are applicable, the RAIF will then benefit from the European passport granted by the AIFM Directive for marketing to professional investors.
The AIFM may delegate or subcontract its power and responsibility to third parties.
For example the valuation can be delegated to a third party expert, the investment advisory can be subcontracted to a company based abroad (being the promoter, regulated or unregulated), etc,
A legal form based on Special Investment Funds (“SIFs”)
The RAIF is largely modelled on the SIF regime, and it can adapt different legal forms (corporate and contractual):
SA, SCA, Coopsa, Sàrl but also as a Special Limited Partnership
or as Fonds Commun de Placement (FCP-mutual fund)
It can also be created as an unregulated AIF with multiple compartments (SICAV), with segregation of assets and liabilities.
The RAIF like the SIF are subject to a 30% risk spreading rule which means that maximum 30% of its assets cannot invested in the same instrument/asset/issuer. Such rule should be reached within a certain period of time after the setup of the RAIF.
Some SLP are not subject to such a diversification rule though they are considered as AIF but not necessarily qualify under the RAIF regime (please contact us to discuss your project) .