Raifs

Luxembourg is gradually carving out a role in global private markets, not with fanfare, but through quiet, deliberate action. Emerging investor relations roles, a growing presence of single family offices, and a measured push to localise fundraising are reshaping its identity beyond its traditional middle-office roots.

Private debt continues to expand in Luxembourg, but regulators, fund managers and legal experts warn that the market is becoming harder to navigate

Luxembourg’s Raif market shows resilience in 2024, but Investment Officer’s data analysis shows slowing sub-fund launches, revealing growing caution in alternative fund markets.

Luxembourg-based investment advisory firm Alumia has announced a partnership with CIFC Asset Management, an alternative credit specialist headquartered in Miami.

Luxembourg fund vehicles are increasingly being used to finance international independent film production.

The latest CSSF data reveals a decline in new registrations of Luxembourg alternative investment funds since the first quarter of this year. However, reserved alternative investment funds continue to demonstrate resilience, driven by recent legislative updates and steady demand.

Registrations of new Reserved Alternative Investment Funds (Raifs) in Luxembourg slowed in April, continuing a decline from last December’s peak, reflecting higher interest rates and a market shift towards sub-funds under existing structures.

A data analysis by Investment Officer makes clear that alternative investment fund managers in Luxembourg increasingly prioritise launching new sub-funds or compartments under established Reserved Alternative Investment Funds, known as Raifs, instead of launching new primary structures.

Registration levels of new Reserved Alternative Investment Funds have continued their recovery from the slowdowns in activity seen earlier this year. In October, a total of 35 new Raifs were created, according to Investment Officer’s analysis of the latest Raif registration date made available in mid-November by the Luxembourg Business Registers. 

A total of 30 new Reserved Alternative Investment Funds, or Raifs, were added to the Luxembourg Business Register during March 2023, down from 40 in the same month a year earlier. During the first quarter, 15 percent fewer Raifs were registered than in the same period last year.