Under Luxembourg law, a reserved alternative investment fund (RAIF) is an undertaking for collective investment. The RAIF must be domiciled in Luxembourg. The RAIF always qualifies as an alternative investment fund (AIF) under the Law of 12 July 2013 on alternative investment fund managers (the AIFM Law). The sole object of the RAIF shall be the collective investment of its funds in assets with the aim of spreading the investment risks and providing to investors the benefits of the results of the management of their assets. Management shall be understood as comprising at least the service of portfolio management.
Also the securities of partnership interests of the RAIF shall be reserved to one or more well-informed investors.
The well informed investor must have stated in writing that it/she/he adheres to the definition of well informed investors (as defined by the law of 23 July 2016 on reserved alternative investment funds as amended, the RAIF Law). The status of well informed investors includes:
(i) institutional investor(s) or professional investor(s) investing a minimum of 125,000 euros in the RAIF; or
(ii) any other investor(s) who have been assessed by a:
credit institution,
investment firm, or
management company;
certifying the investor’s:
expertise,
experience, and
knowledge;
in adequately appraising an investment in the RAIF.
Finally the constitutive documents of the RAIF shall expressly mention that it is subject to the law of 23 July 2016 on reserved alternative investment funds as amended.
References: Articles 1(1)a), 2(1)a), 2(1)b)i) & ii) of the law of 23 July 2016 on reserved alternative investment funds as amended; What is a RAIF? - #180-169*, June 17, 2020, Bertrand Mariaux; What Are the Legal Forms of a RAIF? #253-242*, August 29, 2020, Bertrand Mariaux
* Podcast #384
*YouTube Video 373|
Bertrand Mariaux, Avocat à la Cour, LL.M. (hons.)
Prestation de serment (Swearing-in oath): Luxembourg (2011), Certificat d’Aptitude à la Profession d’Avocat, École de Formation professionnelle des Barreaux de la Cour d’appel de Paris (2009), Bond University (LL.M. (distinct.), International Legal Practice, 2010), Université Sorbonne Paris Nord & University of Limerick (Master in European & International Law - major in economics, 2008), certified Expert in Microfinance (Frankfurt School of Finance & Management, 2015), social entrepreneurship (University of Oxford, 2015 & The Wharton School of Social Policy & Practice, 2014) and social & solidarity economy (International Labour Organization Academy - Social & Solidarity Economy, Organisation Internationale du Travail - Économie Sociale et Solidaire, 2017)
Contributors : Cédric Buisine, avocat ; Susanna Shepherd, juriste