- January 18, 2020
- Posted by: unionescrow
Union Escrow’s Reserved Alternative Investment Fund services offer speed to market and flexibility for asset managers wanting to set up in Luxembourg.
Regulated through an Alternative Investment Fund Manager (AIFM) only, the Luxembourg Reserved Alternative Investment Fund offers a tax-flexible, multipurpose fund that can be deployed quickly.
Exemplar Reserved Alternative Investment Fund set-up
Key elements of the Reserved Alternative Investment Fund
- Flexible, easy-entry features
Can be set-up as an umbrella or single fund structure to allow a multi-asset strategy fund platform within a single Luxembourg vehicle. It has a wide range of share-class features, including different currencies and hedging exposure. The minimum capital requirements are relatively low at €1,250,000 within 12 months. There are no investment rules and restrictions except the requirement to adhere to the principle of diversification.
- Subject to tax only at the fund level
As it is a tax-accepted fund investment vehicle, the Luxembourg Reserved Alternative Investment Fund is subject to a flexible tax regime that adheres to BEPS, transfer pricing and local tax regulations. The RAIF is subject to an annual subscription tax of 1bsp on the net asset value.
- Clear prospectus requirements
The RAIF is not available to retail investors, only to institutional investors. The offering documents must emphasise the absence of CSSF supervision. A depositaryis mandatory. Any asset class can be chosen.
- Comprehensible investor reporting
Annual financial statements and investor reporting must adhere to AIFMD standards. Accounting standards can be Luxembourg GAAP of IFRS. Financial statements must be audited by an Approved Statutory Auditor.
The Reserved Alternative Investment Fund is a highly attractive alternative to existing Luxembourg structures. It has similar features to established and successful Specialised Investment Fund (SIF) and Société d’Investment en Capital à Risqué (SICAR) structures.
The RAIF is quicker to set up, however, has relatively low incorporation costs, can use the SIF or SICAR tax regimes, can be managed by an authorised Alternative Investment Fund Manager, and offers transparency.
Unlike the SICAR and SIF, the Reserved Alternative Investment Fund is not subject to the supervision of the Commission de Surveillance du Secateurs Financier (CSSF), falling instead under the Alternative Investment Fund Managers Directive (AIFMD).
Our Reserved Alternative Investment Fund (RAIF) services
Union Escrowwas the first fund services provider to support the Luxembourg Reserved Alternative Investment Fund and can assist throughout the full RAIF lifecycle.
An authorised AIFM can manage a RAIF. This makes the Reserved Alternative Investment Fund indirectly supervised because the AIFM falls under the supervision of the competent authority.
A Luxembourg-based depositary must be appointed for the RAIF. The CSSF has approved Union Escrowto act as a Reserved Alternative Investment Fund depositary.
Deploy TMF Group’s full-service offering and lay firm foundations for your fund.
- Start with the essential building blocks: administration, accounting, depositary, transfer agency and trustee services.
- Continue with robust governance and reporting that stems from our mastery of regulatory detail in over 80 jurisdictions.
- Enjoy a seamless global service, coordinated through a single contact, based near your operational teams in any of the major fund jurisdictions.
- Rely on specialists who understand the spectrum of investment funds – mezzanine, debt fund and fund of funds among them – plus pooling vehicles covering real assets and commodities, REITs, private equity and real estate and infrastructure.
- Work with a team that enjoys excellent relationships with leading independent law firms and tax consultants, collaborating efficiently and facilitating first-class advice worldwide.
- Access our services 24 hours a day, regardless of where you are based.
We make a complex world simple
Union Escrowis the leading provider of administrative support services for international business expansion – organically or through M&A – and investment funds.
With close-knit teams of some 7,800 in-house experts – on the ground in over 80 locations – we are the only company worldwide to provide the combination of fiduciary, company secretarial, accounting and tax and HR and payroll services essential to the success of businesses investing, operating and expanding across multiple jurisdictions.
We know how to unlock access to some of the world’s most attractive markets – no matter how complex – swiftly, safely and efficiently.
That’s why over 60% of the Fortune Global 500 and FTSE 100 and almost half of the top 300 private equity firms use us.