Slow summer: August sees dwindling Raif registrations

Registrations of reserved alternative investment funds took a very relaxed late-summer break during August, quietening to a level last seen early in the Raif product’s history — in January 2019. Only 15 new funds were registered during the month, according to data from Luxembourg Business Registers analysed by Investment Officer.

This slow spell follows a moderate recovery recorded in June and July (see earlier story), ending a lower level of registrations seen earlier during the year. The slow rate of new Raif registrations was accounted for by some observers to external factors such as macroeconomic conditions, as well as geopolitical volatility, sticky inflation and ongoing interest rate rises.

Registration counts for August have been higher in previous years. In 2022, there were 27 during August, and 2021 sported a much higher number of 41. Even Covid-hit 2020 saw 19 new Raifs registered in August, with the 2019 level reaching 30.

^{Source: Investment Officer based on Luxembourg Business Register data.}

Still optimism

Despite the slowdowns, Raif observers have been optimistic about the fund vehicles’ prospects.

“We look forward to the second half of 2023 and beyond when we expect to see a partial recovery in the number of new launches as well as continued innovation in the market, with new structures and strategies being launched across the Luxembourg fund industry,” said Dominik Becker, regional head central & northern Europe for business development at Bermuda-registered Apex Group.

Raifs are a Luxembourg investment vehicle with its own “product law” that can be used for several investment strategies including real estate, private equity, debt and commodities. The funds are only available to “well-informed” or institutional investors, unlike the widely used and popular Ucits funds that are structured around more liquid asset classes. Investors wishing to make a private investment through a Raif are required to commit at least 125,000 euros on a long-term basis. 

Diverse Raif uses

The August-registered Raifs demonstrated some of the diversity to which Raifs are applied: Real assets, wealth management, European value, healthcare growth, green renewable energy, capital raising, private debt, global value, future finance and mindfulness were among the various RAIF names.

Some of the most active alternative investment fund managers in the Raif business were the top registrants during August. Alter Domus Management Company S.A. registered two, as did Carne Global Fund Managers (Luxembourg). The other 11 registrants were one-offs during the period.

Alter Domus registered its Real Assets Investment Platform (RAIP) SCA  Raif on 1 August and its PG3 Luxembourg Funds SCA on 10 August.

Carne Global Fund Managers launched its Ares Wealth Management Solutions Global Access SCA on 11 August and its QIC Investment Fund 1 SCSp on 14 August.

The following new Raifs were registered in August:

Related articles on Investment Officer Luxembourg:

• Warburg aims for €300 mln with real estate debt Raif
• New Raif registrations show moderate recovery in July
• In Flux: Luxembourg asset scene sizzles