Luxembourg RAIF Fund Structures

Form a Luxembourg RAIF Fund

Luxembourg Alternative Investment Fund (AIF) Formation

Please find the following information and general costs for the setup of a RAIF pubic Sub Fund. We incorporate a strategy whereby your sub-fund(s) will operate under the main fund, adding to the privacy features of the fund structure. The fund structure is up and running. Your sub fund can be created in 2 weeks with your business plan.

Luxembourg is the leading investment fund centre in Europe, and second in the world after the United States. Luxembourg has arguably the strongest reputation in the world as an international fund centre, and caters to all types of collective investment vehicles, covering all of the primary fund strategies.

The RAIF public fund structure is a public fund with no limit on the amount raised per sub-fund. So this type of sub-fund is NOT limited to EUR 100 million capital under management. There is no limit to the amount which can be raised. Investors must be qualified and the minimum investment in the fund is EUR 125,000. Note, we do not find the investors. We provide a legal vehicle to allow you to do so, and will allow investors to login to their online banking and purchase the fund. 

The total cost to set up the sub-fund is under EUR 100,000. More information on costs below:

One-time fees:

Legal setup costs: EUR 25,500

Other costs/recurring fees payable to third parties:

Most of the cost is for the fund manager (AIFM) & Central Administration – EUR 30,000 to 50,000 (depending on complexity, the geography of investors, etc.) per year, payable upon incorporation. These costs can be paid quarterly, so not due all at once. There will also be yearly Audits and banks fees/costs. We have a JP Morgan bank already, with yearly costs around EUR 30,000.

Estimated Timing:

Once we kick off the project, only about 2 to 3 weeks to have the sub-fund completely up and running, including the bank account, once we have the sub fund’s businsess plan.

Key points:

  • Luxembourg RAIF sub-funds can be formed in a very short time (2 to 3 weeks), since the fund is already approved, and it does not require supervision by the Luxembourg Commission de Surveillance du Secteur Financier (CSSF). Instead, the RAIF is regulated by the AIFMD and supervised by an authorized Alternative Investment Fund Manager (AIFM);
  • Luxembourg is the leading investment fund centre in Europe, second in the world after the United States. Luxembourg has a strong reputation as an international fund centre, and caters to all types of collective investment vehicles, covering all of the primary fund strategies.
  • Luxembourg RAIF sub-funds are very affordable to set up and operate.
  • Luxembourg RAIF sub-funds are not limited to EUR 100 million in investment.
  • Luxembourg RAIF sub funds are managed by a Management Company authorized by CSSF, pursuant to the Directive AIFM 2011/61/UE;
  • Luxembourg RAIF sub funds do not require the approval of CSSF for being launched.
  • Luxembourg RAIF sub funds benefit from the European Passport, allowing all businesses invested in the fund to be marketed in all EU-countries;
  • Luxembourg RAIF sub funds allow for diversification, consisting in an “umbrella” fund with multiple compartments, each with a specific investment policy, cost structure and distribution policy.
  • Luxembourg RAIF sub funds provide you with complete anonymity.
  • Luxembourg RAIF sub funds are very visible and can be accessible to investors conveniently through their online banking.
  • Luxembourg RAIF sub funds are public, which means they can be promoted as freely as a publicly traded stock.
  • We can easily and very affordably list the Luxembourg RAIF sub fund on the stock market.
  • With regard to taxation of the above mentioned funds, it is provided that:
    • An annual subscription tax of 0.01% of net assets has to be paid every three months;
    • In case the Fund holds parts of other funds, the above mentioned taxation is not due, in order to avoid double taxation;
    • On an international level, RAIF is only subject to 29 of 76 tax treaties between Luxembourg and the other EU-countries.

 

Contact us for your Luxembourg sub-fund setup.

 

 

 

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