RAIF vs SIF vs SICAR: Which Fund to Choose in Luxembourg?
Mickaël LOC
Investment Fund Expert ·
RAIF vs SIF vs SICAR: Which Fund to Choose in Luxembourg?
Luxembourg offers three major alternative investment vehicles: the RAIF (Reserved Alternative Investment Fund), the SIF (Specialised Investment Fund) and the SICAR (Investment Company in Risk Capital, Société d'Investissement en Capital à Risque). Each has its own characteristics in terms of CSSF regulation, eligible investors, tax regime and setup speed.
Detailed comparison
| Criterion | RAIF | SIF | SICAR |
|---|---|---|---|
| CSSF authorisation | No (indirect supervision via AIFM) | Yes (direct authorisation) | Yes (direct authorisation) |
| Launch timeline | 2-4 weeks | 3-6 months | 3-6 months |
| Investors | Well-informed (art. 2 RAIF) | Well-informed (min. €125,000) | Well-informed (min. €125,000) |
| Diversification | Mandatory (except PE) | Mandatory | Not mandatory |
| Taxation | Subscription tax 0.01% | Subscription tax 0.01% | IRC 17% (with PE exemptions) |
| AIFM required | Yes (mandatory) | Optional | Optional |
When to choose each vehicle
The RAIF is ideal for a quick launch without waiting for CSSF authorisation: it is preferred by managers who already have an authorised AIFM. The SIF offers the credibility of direct CSSF supervision and is suitable for multi-asset strategies (real estate, private equity, debt, infrastructure). The SICAR specialises in venture capital and private equity, with the advantage of an exemption from tax on income and capital gains from qualifying participations. The choice depends on the investment strategy, investor profile and desired time-to-market.
Legal forms and structures
The three vehicles can be structured as SA, SCA, SARL, SCS or SCSp (special limited partnership, the most popular for PE). They can also be set up as a mutual investment fund (FCP) for the RAIF and SIF. The SCSp has become the dominant structure for private equity thanks to its tax transparency, contractual flexibility and compliance with international market standards (similar to the Anglo-Saxon limited partnership).
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