Reserved Alternative Investment Fund (RAIF) services

The Reserved Alternative Investment Fund (RAIF) is a revolutionary new type of Luxembourg investment fund.

The RAIF is changing the Luxembourg Alternative Investment Fund (AIF) landscape, offering a tax-flexible, multipurpose AIF that can be deployed quickly, as it is regulated through an Alternative Investment Fund Manager (AIFM) only.

First mover advantage

TMF Group was the first supplier to launch services that support the RAIF in Luxembourg, and can assist with all fund service needs. Our vertically-integrated model supports the full fund life-cycle, with a comprehensive range of core and “value-added” services. With offices in over 80 countries and SPV administration at local level, we are a truly global player. We also provide aggregation for setups that include more than one jurisdiction.

Our core fund services are provided from our Luxembourg centre of excellence, with local teams dedicated to the fund administration and governance. Our model is underpinned by a best-in-class technology platform: Sungard’s Investran.

Highly attractive alternative to existing structures

The RAIF has similar features to the established and successful Specialised Investment Fund (SIF) and Société d’investissement en capital à risqué (SICAR) structures.

The RAIF is attractive for the following reasons:

  • Quicker setup
  • Low incorporation costs
  • Highly flexible – a RAIF can make use of the SIF or SICAR tax regime
  • Managed by an authorised Alternative Investment Fund Manager
  • Fund structure protects investors and offers transparency
  • Luxembourg-run: an established, stable political and social environment with a strong economy.
  • Not subject to the supervision of the Commission de Surveillance du Secateurs Financier (CSSF). The RAIF falls under the Alternative Investment Fund Managers Directive (AIFMD); a clear distinction from the SICAR and SIF.

The RAIF framework

The below sample framework shows the RAIF set-up:

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Some of the key elements of the RAIF:

  • Features

    Umbrella or single fund structure will allow a multi-asset strategy fund platform within a single Luxembourg vehicle

    Wide range of share class features, including different currencies and hedging exposure

    Minimum capital is €1,250,000 within 12 months

    No investment rules or restrictions except the principle of diversification.

  • Tax

    Flexible tax regime as RAIF is a tax-accepted fund investment vehicle

    Tax transparency is eligible respecting BEPS, Transfer Pricing and other regulations

    Subject to annual subscription tax of 1bps on the net asset value

  • Prospectus

    Offering documents must include the absence of CSSF supervision

    RAIF is not available for Retail investors

    Annual asset valuation as a minimum

    Depositary is mandatory

    Any asset class is possible

  • Investor reporting

    Annual financial statements and investor reporting must adhere to the AIFMD standards

    Accounting standards can be Luxembourg GAAP or IFRS

    Financial statements to be audited by an Approved Statutory Auditor.

What we do and how can we help

For global companies, TMF Group offers a single point of contact and a cohesive, professional service, delivered by proactive, responsive, multi-lingual local experts.

Find out more about our Reserved Alternative Investment Fund (RAIF) services

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