Investment funds
RAIF lawyer in Luxembourg
The firm supports the creation and structuring of a RAIF, the reserved alternative investment fund: drafting of the articles, the prospectus or PPM and the agreements, organisation of governance and coordination with the authorised AIFM, an indispensable condition of the RAIF.
The RAIF (reserved alternative investment fund) is one of the most popular vehicles in Luxembourg: it is not subject to product approval by the CSSF, which allows a fast time to market, but it must mandatorily be managed by an authorised AIFM. Its flexibility therefore rests on the quality of its documentation and the soundness of its governance.
Cerno Law Firm acts as legal counsel to the initiator: the firm structures the RAIF, drafts its documentation and organises its governance, in coordination with the authorised AIFM, the depositary, the central administration and the auditor. The firm does not hold itself out as an AIFM and provides no CSSF-regulated management service.
The need
As an initiator, manager or family office, you want to launch an alternative fund quickly in Luxembourg and the RAIF seems suited to avoiding product approval.
Without rigorous documentation and a designated authorised AIFM, the absence of product approval does not exempt you from any structuring requirement and exposes the fundraising to reworks.
The risk
An incomplete prospectus or PPM, articles unsuited to the strategy, governance poorly articulated with the AIFM and the depositary, deficient service agreements, poorly defined subscription terms.
A poorly documented RAIF delays the closing, weakens the entry of investors and exposes both the initiator and the service providers to disputes over the terms of the investment.
How the firm helps
Structuring of the RAIF, drafting of the articles, the prospectus or PPM and the agreements (management, depositary, central administration), organisation of governance and coordination of the service providers through to the first closing.
Cerno is a law firm admitted to the Luxembourg Bar: the digital tools serve only to simplify the collection of information, the qualification of the matter and the tracking of steps; they never replace the lawyer’s advice, who drafts each clause. The regulated management of the RAIF is the responsibility of an authorised AIFM, a mandatory designation with which the firm works in coordination.
Practice areas
When to call on the firm
- Launch an alternative fund quickly without CSSF product approval.
- Structure a single or multi sub-fund RAIF and draft its documentation.
- Articulate the RAIF’s governance with an authorised AIFM.
- Document the agreements with the depositary and the central administration.
Method
Our engagement process
- 1
Information intake
You describe your need via a structured form or an initial call. Our digital tools serve only to organise this information and save time.
- 2
Lawyer qualification
Maître Maglo reviews your situation, identifies the legal issues and confirms the feasibility and exact scope of the engagement.
- 3
Transparent quote
You receive a clear fee proposal, a fixed fee or a range, before any engagement. Nothing is billed without your approval.
- 4
Legal work
The firm drafts, negotiates or litigates as required. Every deliverable is designed and approved by a lawyer admitted to the Luxembourg Bar.
- 5
Tracking and delivery
You follow your matter transparently and receive your finalised documents with the explanations you need.
Documents required
- • Investment strategy and profile of the investors
- • Envisaged corporate form and sub-fund structure
- • Identity of the designated authorised AIFM
- • Identity of the depositary, the central administration and the auditor
Deliverables
- • Structured RAIF and drafted legal documentation (articles, prospectus or PPM)
- • Drafted management, depositary and central administration agreements
- • Organisation of governance and coordination of service providers through to closing
Indicative timing
The structuring and the first documentation are delivered within a few business days; finalisation and the first closing are scheduled according to coordination with the AIFM, the depositary and the central administration.
Stated fees
Consultation from 175 € excl. VAT; creation and documentation of a RAIF on a tailored quote, from 1 500 € depending on the structure and the number of sub-funds. Everything is quoted before any engagement.
FAQ
Frequently asked questions
Does the RAIF need approval from the CSSF?
The RAIF is not subject to product approval by the CSSF, which speeds up its time to market. However, it must mandatorily be managed by an authorised AIFM, which is itself supervised.
Is an AIFM mandatory for a RAIF?
Yes. The designation of an authorised AIFM is a condition for setting up the RAIF. The firm structures the documentation and governance in coordination with that AIFM; it does not itself carry out the regulated management.
Does the firm manage the RAIF?
No. Cerno is a law firm: it supports the legal structuring and documentation of the RAIF. Regulated management is the responsibility of the authorised AIFM, with whom the firm works in coordination.
What documents are needed for a RAIF?
Mainly the articles, the prospectus or PPM and the agreements with the AIFM, the depositary and the central administration. The firm drafts this documentation and articulates it with the fund’s governance.
Let’s talk about your matter
Describe your situation: you receive an initial analysis and a transparent quote, with no obligation. One dedicated lawyer, from start to finish.