Societe Generale Private Banking supports the distribution of wealth funds
Luxembourg offers a secure and attractive investment environment. Its political and economic stability, as well as its regulatory framework, have always been fertile ground for new and innovative financial solutions and services, right in the heart of Europe.
It is also the world’s second largest investment fund hub (after the United States) and the leading financial centre in the European Union: more than 3500 investment funds representing more than 5000 billion assets deposited in Luxembourg banking institutions.
In order to meet the structuring needs of investors in this globalised environment, Luxembourg law has set up a panel of companies ranging from the simplest form (partnerships or limited companies), the most sophisticated holding tools (e.g. investment funds). The FIAR Reserved Alternative Investment Fund is the perfect example.
The RAIF is an unregulated collective investment vehicle created in 2016.
It is governed by the AIFM directive aimed at establishing a standardised regulatory framework for alternative funds distributed in the European Union.
The RAIF is both:
- Flexible, because it can invest in all types of asset classes
- And agile, because it can be constituted and operational within a few weeks, while still managed by an AIFM - an alternative investment fund manager.
And this is the innovation of the RAIF: Comparatively speaking, traditional Luxembourg funds, like UCITS and specialised investment funds (FIS) require the authorisation of the regulator before going to market - a procedure than can take up to several months.
FIAR can invest in any asset class: private equity, real estate, infrastructure, private debt and listed securities of all types.
It is reserved for well-informed investors and institutionals or professionals, but we see a strong trend, for 4 years, large families to constitute FIAR in order to structure their real estate investments, private equity but also assets such as works of art or collectible vehicles.