Investment funds in Luxembourg

Luxembourg's fund toolkit: matching structure to strategy

Luxembourg is the world's second-largest fund domicile after the United States and Europe's leading investment fund centre, with over €5.5 trillion in assets under management. That scale matters less to a manager than what it buys: a full menu of vehicles, each answering a different question about supervision, speed and who is allowed to invest.

The most common misreading is that a RAIF is "unregulated." It is not directly product-approved by the CSSF, which is exactly what makes it fast to launch — but it can only exist with an authorised AIFM, so the oversight sits at the manager level rather than the product level. Most alternative vehicles here are built for professionals: the well-informed investor threshold is €100,000, not a retail entry point. The structures below set out the RAIF, SIF, UCITS and SICAR side by side so the trade-offs are explicit.

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	€100,000
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	€100,000
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