Who is a SIF for?
SIFs are reserved for institutional, professional and other qualifying well-informed investors. The regime can accommodate various asset classes and investment strategies within its applicable framework. A SIF is not a standard mass-market retail fund.
Authorisation and ongoing supervision
A SIF requires prior CSSF authorisation and remains subject to supervisory requirements and reporting. The approval process involves constitutional and offering documentation as well as relevant service-provider arrangements.
Essential counterparties
- An AIFM where required by the fund’s classification and the applicable AIFM rules.
- Luxembourg central administration and an eligible depositary.
- An authorised independent auditor for the annual report.
- Legal and tax support tailored to the investment strategy.
SIF versus RAIF
Both regimes target well-informed investors and can support alternative strategies. The important structural difference is direct CSSF product authorisation for a SIF versus the RAIF’s reliance on an authorised external AIFM without direct CSSF product authorisation. Other obligations and practical costs should be evaluated case by case.