Investment Funds Luxembourg
Set up your investment fund in Luxembourg. RAIF, SIF, UCITS, SICAR structures. Expert guidance through CSSF authorization process.
In summary: Luxembourg is Europe's largest investment fund center. Options include RAIF (fast setup, no CSSF approval), SIF (regulated, CSSF approval), UCITS (retail funds, EU passport), and SICAR (risk capital). Minimum investment €125,000 for AIFs.
Luxembourg Fund Industry
Luxembourg is the world's second-largest fund domicile after the United States and Europe's leading investment fund center. With over €5.5 trillion in assets under management, the country offers a comprehensive ecosystem for all types of investment funds.
Fund Structures
RAIF - Reserved Alternative Investment Fund
The RAIF combines the flexibility of an alternative investment fund with fast time-to-market. It is the preferred choice for private equity, real estate, and hedge fund strategies.
| Feature | Details |
|---|---|
| Regulator | Not directly supervised by CSSF |
| Launch time | 2-4 weeks |
| AIFM requirement | Mandatory (external or internal) |
| Eligible investors | Well-informed investors only |
| Minimum investment | €125,000 |
| Legal forms | SICAV, SICAF, FCP, SCS, SCSp |
SIF - Specialized Investment Fund
The SIF is a regulated fund product for alternative investments. It requires CSSF approval but offers maximum flexibility in terms of investment strategies.
| Feature | Details |
|---|---|
| Regulator | Supervised by CSSF |
| Launch time | 3-6 months |
| Eligible investors | Well-informed investors only |
| Minimum investment | €125,000 |
| Risk diversification | 30% maximum per asset |
UCITS - Retail Investment Funds
UCITS are harmonized retail investment funds that can be marketed to investors across the EU. Luxembourg is the leading European domicile for UCITS, hosting over 60% of European cross-border funds.
| Feature | Details |
|---|---|
| Regulator | Supervised by CSSF |
| EU passport | Yes - marketable across all EU states |
| Eligible investors | Retail and institutional |
| Minimum investment | None |
| Eligible assets | Transferable securities, money market, UCITS funds |
SICAR - Risk Capital Investment Company
The SICAR is designed for investments in venture capital and private equity. It offers favorable tax treatment for qualifying investments.
| Feature | Details |
|---|---|
| Regulator | Supervised by CSSF |
| Investment focus | Risk capital only |
| Eligible investors | Well-informed investors |
| Tax regime | Exempt on income from risk capital |
Why Luxembourg for Funds?
- European hub: Distribution to 70+ countries
- Regulatory expertise: CSSF with deep fund experience
- Service provider ecosystem: Leading administrators, custodians, auditors
- Flexible structures: Multiple fund vehicles and umbrella structures
- Tax efficiency: No subscription tax for institutional investors
- Political stability: AAA-rated jurisdiction
Our Services
- Fund structure optimization
- RAIF, SIF, UCITS, SICAR formation
- CSSF authorization support
- Fund documentation (prospectus, PPM, articles)
- AIFM selection and appointment
- Ongoing legal and regulatory support
Frequently Asked Questions
A RAIF (Reserved Alternative Investment Fund) is an unregulated alternative investment fund reserved for well-informed investors. It must appoint a licensed AIFM but is not directly supervised by the CSSF, allowing for faster time-to-market.
The SIF requires CSSF approval before launch, while the RAIF only requires notification. Both have similar investment flexibility, but the RAIF offers faster setup (typically 2-4 weeks vs 3-6 months for a SIF).
For SIFs and RAIFs: €125,000 minimum investment for well-informed investors. For UCITS: no minimum, available to retail investors. For SICARs: €125,000 minimum for all investors.
Luxembourg funds can be structured as: SICAV/SICAF (investment companies), FCP (common fund - contractual), SCS/SCSp (limited partnerships). The choice depends on investor preferences and regulatory requirements.
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