Setting up a RAIF (Reserved Alternative Investment Fund) in Luxembourg has become the go-to choice for savvy fund initiators looking to benefit from fast-track structuring, regulatory efficiency, and investor appeal. At fundsetup, we specialize in establishing Luxembourg RAIFs with a clear and rapid process, delivering full fund setup and regulatory alignment in as little as six weeks.
Why Choose a Luxembourg RAIF Structure?
Luxembourg remains a dominant global hub for fund structuring, offering a RAIF regime that merges flexibility, tax efficiency, and speed to market. A RAIF does not require prior approval from the Luxembourg CSSF (Commission de Surveillance du Secteur Financier), which dramatically reduces setup time compared to traditional regulated fund vehicles like SIFs or SICARs.
Key benefits of a RAIF include:
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Quick time-to-market (4–6 weeks)
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Broad range of eligible assets (including private equity, real estate, crypto, infrastructure)
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No direct CSSF approval required
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Eligible for umbrella structures with multiple compartments
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Access to professional and institutional investors only
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Attractive tax neutrality
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Passporting under AIFMD via an authorized AIFM
Step-by-Step RAIF Setup Process in Luxembourg
1. Define Investment Strategy and Fund Parameters
The first step involves clearly identifying your investment strategy, asset class, investor type, risk profile, and liquidity terms. This step determines the legal form (typically SCS, SCSp, SA, or Sàrl) and whether the RAIF will be open-ended or closed-ended.
At this stage, we assist with:
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Strategic structuring consultations
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Asset eligibility assessment
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Target investor base alignment
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Fund vehicle selection
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Legal form and compartment planning
2. Appoint the Key Fund Service Providers
To comply with the RAIF law and AIFMD regime, you must appoint several licensed providers:
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AIFM (Alternative Investment Fund Manager): A mandatory component to ensure regulatory supervision and AIFMD compliance.
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Custodian Bank: For safekeeping of assets and investor protection.
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Fund Administrator: Handles NAV calculations, investor register, reporting.
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External Auditor: Ensures financial transparency and audit compliance.
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Domiciliation Agent: Provides registered office, document safekeeping, board support.
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Legal and Tax Advisors: Draft legal documents and confirm tax implications.
Our firm has long-standing partnerships with CSSF-licensed AIFMs, top-tier banks, and administrators in Luxembourg.
3. Draft Legal Documentation
RAIF legal documents must be drafted in alignment with Luxembourg’s 2016 RAIF Law and AIFMD. These include:
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Private Placement Memorandum (PPM) / Offering Memorandum
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Limited Partnership Agreement (if SCSp or SCS)
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Articles of Incorporation / Articles of Association
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Management Agreement with the AIFM
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Depositary and Administration Agreements
Our legal partners ensure that documentation meets the standards of both EU directives and the fund’s distribution goals.
4. Fund Incorporation and Notarization
Once documentation is finalized, the fund entity is incorporated before a Luxembourg notary, and the RAIF is registered in the Luxembourg Trade and Companies Register (RCSL). This step typically takes 2–5 working days.
Following this, the fund becomes operational and may begin investment and capital deployment activities.
5. RAIF Notification to Luxembourg Regulator
Although the CSSF does not directly approve RAIFs, the RAIF Law requires a notification to the CSSF by the appointed AIFM within 10 days of formation. This includes submission of key fund documents and registration details.
Once notified, the RAIF is added to the official RAIF list maintained by the Luxembourg regulator.
6. ISIN Activation and Investor Onboarding
With legal and regulatory formalities complete, the next step is:
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ISIN code activation for each share class
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Investor onboarding, KYC/AML compliance
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Fund marketing materials and private placement roadshows
We coordinate with the Central Securities Depository (CSD) and relevant onboarding agents to streamline investor subscription procedures across global markets.
Luxembourg RAIF Fund Timeline – Week-by-Week Breakdown
| Week | Key Milestone |
|---|---|
| Week 1 | Fund strategy finalized, service providers mandated |
| Week 2 | Legal drafting and structuring completed |
| Week 3 | Documentation signed and fund incorporation before notary |
| Week 4 | CSSF notification, AIFM onboarding completed |
| Week 5 | ISIN activation, investor KYC checks begin |
| Week 6 | First capital call and fund operational launch |
Why Work With fundsetup.net?
With offices in DIFC, Dubai and strategic partners in Luxembourg, we offer a fully managed turnkey RAIF setup service covering:
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End-to-end legal structuring and fund registration
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Regulatory alignment with AIFMD and EU cross-border compliance
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Fast-track coordination with CSSF-licensed AIFMs and top fund administrators
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Global investor onboarding and ISIN activation
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Full fund lifecycle support including NAV reporting, audit coordination, and AML/KYC compliance
Our clients include family offices, fund managers, fintech entrepreneurs, and crypto investors seeking EU-domiciled alternative fund vehicles with speed and sophistication.
Who Can Launch a RAIF?
A RAIF is ideal for:
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Experienced fund managers launching alternative investment strategies
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Wealth managers seeking a regulated EU-compliant product
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Crypto, venture capital, and private equity promoters
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Real estate sponsors or SPV consolidators
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Family offices or HNWI syndicates
Our clients benefit from custom fund solutions designed to attract professional and institutional investors across Europe, the Middle East, and Asia.
Frequently Asked Questions
How fast can I launch a RAIF in Luxembourg?
With the right structuring and a pre-approved AIFM, we can launch your RAIF fund within 4–6 weeks.
Do I need to visit Luxembourg?
No physical presence is required. All procedures can be conducted remotely through our DIFC office in Dubai and our legal teams in Luxembourg.
Can I market my RAIF across the EU?
Yes. A RAIF can passport its fund units across the EU under AIFMD, provided the AIFM is authorized in the EU.
Is the RAIF structure tax efficient?
Yes. Most RAIFs benefit from tax neutrality, especially when structured as a SCSp or SCS.
Contact Us Today
📞 +971 23 567 9000
📧 fundsetup.net@gmail.com
📍 DIFC, Dubai, United Arab Emirates
Launch your Luxembourg RAIF fund today with a globally experienced partner. Speed, precision, and regulatory compliance—delivered in 6 weeks.
