Reserved Alternative Investment Fund (RAIF)
The Reserved Alternative Investment Fund (RAIF) is an investment fund that can invest in all types of assets. It qualifies as alternative investment fund (AIF) and is not itself subject to CSSF product approval. RAIFs must appoint an authorized external Alternative Investment Fund Manager (AIFM). If the AIFM is domiciled in the EU, RAIFs can market their shares, units or partnership interests via a specific passport to well informed investors across the EU.
Minimum substance requirement
to operate in Luxembourg:
- Registered office located in Luxembourg
- Bank account based in Luxembourg
- Financial statements under Luxembourg accounting rules
- At least one board member should possess expertise in Luxembourg´s fund regulations and residency in Luxembourg (AML Laws)
- Have the majority of GP board members/directors be Luxembourg residents
- Hold board meetings of GP/Fund in Luxembourg
- The net assets of a RAIF may not be less than EUR 1.250.000
- A minimum of 5% of the capital must be paid upon subscription