Reserved Alternative Investment Fund

An alternative investment fund is created to attract capital from several interested parties with the possibility of further investing in specific projects to generate income.

A reserved alternative investment fund allows you to invest in various assets. It can be opened by the provisions of the AIFMD Directive, which establishes uniform standards for the regulation and supervision of AIFs in the EU.

Meaning of RAIF

Among the features of a reserved AIF, the following should be noted:

• Creation in various organizational and legal forms, including in the form of a mutual investment fund agreement;
• The possibility of having many sub-funds;
• Controlled by an authorized AIFM management company;
• Ample opportunities for using various investment strategies;
• Only available to qualified investors;
• Flexible financing, distribution, and exit opportunities from the fund;
• Standard minimum requirements for depositary and reporting.

Example of RAIF - Luxembourg Reserved Fund

The abbreviation RAIF stands for Reserved Alternative Investment Fund. By definition, RAIF is one of the most popular alternative investment funds, offering various structural solutions for initiators and ample opportunities for investing in any asset.

Advantages of RAIF:

• Opening of the fund in a short amount of time due to a lack of verification by the CSSF;
• Control by a private management company throughout the life of the fund;
• Availability of a European passport, which expands the possibilities of investing in any assets of EU countries;
• Optimal taxation.

When opening an RAIF in Luxembourg, a minimum capital of 1,250,000 euros must be contributed within 12 months of the fund's creation.