The RAIF as a way to set up an investment fund vehicle in Luxembourg (1/5) - What is the RAIF ?

What is the RAIF ?
The Reserved Alternative Investment Fund, the so-called “RAIF” is a very flexible investment vehicle as it capitalises upon the advantages that the Luxembourg legislator had previously provided for two other very successful vehicles, the SIF and the SICAR, but in the case of RAIF these benefits come without the requirement for an authorization and thus no direct supervision by the CSSF.

SIF or SICAR-like RAIF– This means that the initiators of a RAIF can opt for the characteristics of either a SIF, or for the characteristics of a SICAR without having to apply for an authorization and thus by saving time and the relevant authorization and annual supervising fees to be levied by the CSSF.
So, if you decide to invest or to attract investors in real estate, in commodities or in any other type of assets, you can opt for a SIF-like RAIF. While, if you are interested in private equity investments, you can opt for a SICAR-like RAIF.

RAIF as the most tax beneficial on-shore investment fund regime worldwide

What’s more? RAIF is open for investments to retail, yet well-informed investors, and it enjoys a series of benefits from a tax perspective as it has been characterized as the most tax beneficial on-shore investment fund regime on a world class scale.