Crestbridge to pioneer Luxembourg RAIF

Fund administrator Crestbridge will manage the first platform to be launched under Luxembourg’s Reserved Alternative Investment Fund regime, it said on Tuesday.

The new regime, approved in July, places regulatory focus on the alternative investment fund manager – in this case the platform – rather than the individual fund. 

This means non-EU managers can quickly set up and bring to market funds under the supervision of the pre-authorized manager.

“Essentially it provides a management entity for non-EU managers, so that they can access European investors but without having to set up as a manager in Luxembourg themselves,” a spokesperson told pfm.

“[This is] why it’s expected to be popular for Asian and US managers. As ‘the manager,’ the RAIF is regulated rather than its individual funds, so it’s a lighter and quicker form of regulation for funds,” he added.

Existing Luxembourg funds are expected to be converted into the new RAIF structure because of the reduced regulatory burden; unlike existing structures, SIFs and SICARS, they do not have to be approved by the regulator.

The Luxembourg RAIF is one of a number of similar regimes to have been launched over the past year. Malta launched its Notified Alternative Investment Fund in February, while Cyprus is expected to launch its version of the RAIF at the end of the year (see pfm 11 October).

Crestbridge was one of the first administrators to establish a third party AIFM in Luxembourg three years ago, and was among the first in Jersey to be granted a ManCo licence, enabling it to offer management facilities in a non-EU environment.