RAIF, SIF or SICAR in Luxembourg, which fund vehicle to choose?
The RAIF launches fast without direct CSSF authorisation (but with an authorised AIFM); the SIF and SICAR require CSSF authorisation, the SICAR being reserved for risk capital. All three target well-informed investors. The choice depends on strategy, timing and taxation.
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The RAIF (law of 23 July 2016), the SIF (law of 13 February 2007) and the SICAR (law of 15 June 2004) are Luxembourg investment vehicles reserved for well-informed investors. They differ on authorisation, asset range, diversification requirement and tax treatment.
Key takeaway
- RAIF: fastest to launch (no direct authorisation), but an authorised AIFM is mandatory.
- SIF: broad asset range with diversification, under CSSF authorisation.
- SICAR: dedicated to risk capital, no diversification requirement, specific tax regime.
Further reading: fund structuring in Luxembourg, special limited partnership form and AIFM and management company support.
RAIF vs SIF vs SICAR: comparison table
| Criterion | RAIF | SIF | SICAR |
|---|---|---|---|
| CSSF authorisation of the vehicle | No (authorised AIFM mandatory) | Yes | Yes |
| Assets / strategy | All asset types | All types, diversified | Risk capital (PE/VC) |
| Authorised AIFM | Mandatory | Depending on thresholds | Depending on thresholds |
| Risk diversification | Yes (except risk-capital option) | Yes | Not required |
| Investors | Well-informed | Well-informed | Well-informed |
| Taxation | 0.01% subscription tax (specific regime if risk capital) | 0.01% subscription tax | Taxable, but income from securities exempt; no subscription tax |
| Launch time | 6 to 10 weeks | Longer (authorisation) | Longer (authorisation) |
| Legal basis | Law of 23 July 2016 | Law of 13 February 2007 | Law of 15 June 2004 |
Sources: official texts cited on this page. Summary: Financial Services Luxembourg, licensed accountant.
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Official sources and verification
This page is published under the editorial responsibility of Mickaël LOC for Financial Services Luxembourg (business permit 10077274). The rules cited should be checked against competent authorities and the circumstances of the case.
Frequently asked questions
Which vehicle for a Private Equity fund?
Often a RAIF (fast launch) or a SICAR (dedicated to risk capital), usually as an SCSp with a holding SOPARFI. The choice depends on timing, investors and taxation.
Does the RAIF need authorisation?
The vehicle itself has no direct CSSF authorisation, but it must be managed by a fully authorised AIFM: supervision is indirect.
Can a SICAR invest outside risk capital?
No: the SICAR is reserved for risk-capital investments. For a broader strategy, the SIF or RAIF are suitable.
Request a quote: RAIF / SIF / SICAR comparison
First reply within 24 working hours, from a named adviser. NDA on request before any confidential document.