Fund Finance - Know your borrower - Luxembourg
10 November 2021
Question: we are considering making a subscription facility available to our client, a Luxembourg fund called XYZ Private Market SCSp SICAV-RAIF – Sub-fund 1. What does "SCSp SICAV-RAIF" stand for please?
Answer: a RAIF is an unregulated fund vehicle. It can be structured as a FCP or a SICAV with multiple compartments. It will usually take the form of a S.A., a S.à r.l. or a SCSp. Unlike a SIF, a RAIF is not authorised by the CSSF. It cannot be structured as a non-AIF and must be managed by an external AIFM.
Whilst legally correct, is this answer really helpful?
It is easy to be overwhelmed by the number of acronyms associated with investment fund vehicles available in Luxembourg. Our briefing, which you can download below, aims to unlock the Luxembourg mysteries.
