Luxembourg lists first ever Reserved Alternative Investment Fund
New unregulated fund structure will enable asset managers to list funds much faster than previously possible.
The Luxembourg Stock Exchange (LuxSE) lists the first ever Reserved Alternative Investment Fund (RAIF). The new RAIF was brought to market by Finexis and has been listed on the Euro MTF.
RAIFs are a new type of vehicle that combine the characteristics and structures of specialised investment funds (SIFs) and investment companies in risk capital (SICARs) qualifying as Alternative Investment Funds (AIFs). However, unlike traditional AIFs, RAIFs are not subject to approval from Luxembourg’s regulator, the Commission de Surveillance du Secteur Financier, also known as the CSSF.
The Law of 23 July 2016, which came into effect last year, provided a legal framework to develop the new fund structures. More than 100 RAIFs have been created since the law was passed, however, it’s the first time a RAIF has been listed on an exchange.
The Finexis Equity Fund lists two sub-funds: Renewable Energy (two share classes) and Multi-Asset Strategy (one share class). The first sub-fund opens the door to most elements of energy investments, although it is likely that there will be a tendency towards green energy investments and the related infrastructure. The Multi-Asset Strategy sub-fund might be comprised of one or more derivative contracts.
Alex Picco, Head of Listings, said: "The listing of the first RAIF is an important step as it accommodates the needs of the fund industry in getting more visibility and increased time-to-market of alternative funds. With this new development Luxembourg, the world’s second largest investment fund centre, has further improved its attractiveness as a domicile for the establishment of alternative vehicles."
Maciej Waloszyk, Managing Director responsible for Business Development at Finexis, said: "We are proud to be the first management company to list a RAIF on LuxSE. We are an SME acting on a very competitive market composed of many major industry players, still not only were we the first to list such product in Luxembourg, but we have also set the market standard and procedures required for the listing of a completely new type of an Investment Fund". LuxSE is the leading centre for investment funds in Europe listing more than 6,000 share classes.