Luxembourg fund structures, explained.

Start with the investor and the strategy

The intended investors, investment strategy and distribution markets influence the fund framework. A retail-oriented liquid securities strategy may call for a different structure from a private markets fund intended for professional or well-informed investors.

AIF is a broader regulatory classification, not a single Luxembourg legal form. Structures such as RAIF and SIF frequently qualify as alternative investment funds.

Three structures worth knowing

UCITS are subject to the EU UCITS framework and authorisation by the CSSF when established in Luxembourg. RAIFs are not directly authorised as fund products by the CSSF, but must be managed by an authorised external AIFM. SIFs require CSSF authorisation and ongoing supervision.

• UCITS: commonly used for broad European retail distribution, subject to detailed investment and disclosure rules.
• RAIF: flexible alternative investment fund vehicle restricted to well-informed investors.
• SIF: specialised, CSSF-authorised fund regime reserved for well-informed investors.

Beyond the three headline regimes

Part II UCIs, SICARs and the European Long-Term Investment Fund (ELTIF) framework are also relevant to Luxembourg fund structuring. Their suitability depends on the strategy, investor eligibility and applicable rules. The ELTIF is an EU product label with specific requirements, rather than a general replacement for local fund laws.

Before choosing a structure

Establish the investor categories, target jurisdictions, liquidity expectations, asset classes and operational budget. Then confirm the precise legal, regulatory and tax implications with qualified professionals. No website overview can determine the right structure for an individual mandate.