The Luxembourg Council of Government approved on 27 November 2015 the bill of law (“Bill”) on reserved alternative investment funds (“RAIF”), a new form of Luxembourg alternative investment fund (“AIF”). The Bill was deposited with the Luxembourg parliament on 14 December 2015 and was published under number 6929 today.

In the post-AIFMD environment – where regulation is focused on the alternative investment fund manager (“AIFM”) of the AIF and only indirectly imposes certain requirements upon the AIF itself – the Luxembourg Government is creating a fund vehicle with the advantages of specialized investment funds (fonds d’investissement spécialisé or “SIF”) or investment companies in risk capital (sociétés d’investissement d'investissement en capital à risque or “SICAR”) in terms of structuring (e.g., ability to adopt a variable capital structure and to establish sub-funds) without being required to seek prior authorization by the Luxembourg supervisory authority, the Commission de Surveillance du Secteur Financier (“CSSF”). The Bill is largely inspired by the Luxembourg SIF Law and the Luxembourg SICAR Law....