Find out the answers to our most frequently asked questions.

What is a RAIF?
The Reserved Alternative Investment Fund (RAIF) is an investment fund that can invest in all types of assets. It qualifies as an alternative investment fund (AIF) and is not itself subject to CSSF product approval. RAIFs have an authorised 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 and other approved international jurisdictions under their own country passport.
Why have a RAIF?
The RAIF is a flexible, alternative fund type set up under Luxembourg law for qualified investors. It is managed by an Alternative Investment Fund Manager (AIFM) monitored by the Luxembourgish supervisory authorities and is subject to strict money laundering and compliance regulations. Qualified investors can invest in Luxembourgish RAIFs with investment volumes starting from EUR 500,000. These are attractive fiscal arrangements. Luxembourg does not collect flat-rate or withholding taxes on dividends paid out by RAIFs; indeed, an annual subscription tax of 0.01% is the only levy. Returns are only taxed subject to the fiscal law in the country in which the investor is domiciled. There is a high degree of investment security and regular checks and balances. Strict regulations ensure that fund management and asset depositary functions are kept separate. RAIF assets are held by a Luxembourgish custodian bank in accordance with Luxembourgish AIFM regulations, while annual accounts are audited by an external Luxembourgish auditor.
Who is eligible to invest?
Investment in a RAIF is limited to “well-informed” investors able to adequately assess the risks associated with an investment in such a vehicle. These are defined as UHNW, family offices, institutional investors, professional investors and investors who have confirmed in writing that they adhere to “well-informed” investor status, and who either invest a minimum of EUR 500,000 in the RAIF or have been assessed by a credit institution, investment firm or management company which certifies the investor’s expertise, experience and knowledge in adequately appraising an investment in the RAIF.

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