A UCITS (Undertakings for Collective Investment in Transferable Securities) is a highly regulated, EU-passported fund vehicle designed for retail investors. It is the global gold standard for publicly distributed funds, accepted in over 70 countries. UCITS funds must invest primarily in liquid, transferable securities and are subject to strict diversification rules. They are ideal for asset managers targeting a broad investor base across Europe and beyond.

The RAIF is Luxembourg's most flexible alternative fund vehicle. It requires no direct CSSF authorisation — the fund can be launched within weeks once a regulated AIFM is appointed. Reserved for well-informed and professional investors (minimum investment of €125,000), RAIFs can invest in virtually any asset class, making them popular for private equity, real estate, hedge funds, and digital asset strategies.

The SIF (Fonds d'Investissement Spécialisé) is a Luxembourg regulated alternative fund requiring CSSF authorisation. Like the RAIF, it is reserved for well-informed investors with a minimum investment of €125,000. The SIF benefits from a very flexible investment policy, a favourable tax regime (0.01% subscription tax), and access to Luxembourg's double tax treaty network. Regulatory approval typically takes 3–6 months.

Several Luxembourg vehicles are well-suited for private equity and venture capital strategies. The RAIF in SCSp form is by far the most popular choice: it launches in 4–8 weeks (no CSSF approval required), offers LPA-style investor agreements, and is fully tax-transparent. The SIF in SCSp form is the regulated equivalent, preferred when investors require CSSF oversight. The SCSp alone (unregulated, sub-threshold) works well for smaller managers. The SOPARFI is frequently used alongside a main fund as a holding or co-investment vehicle. The SICAR (Société d'Investissement en Capital à Risque) is the only vehicle specifically designed for risk capital — it must invest exclusively in equity or quasi-equity in growth companies, benefits from full tax exemption on risk capital gains, but is more restrictive than a RAIF or SIF and sees less usage in practice.

The SCSp (Société en Commandite Spéciale) is Luxembourg's equivalent of the Anglo-Saxon Limited Partnership. It is an unregulated, tax-transparent structure frequently used as the legal form of a RAIF or SIF. With no separate legal personality, it offers maximum flexibility in investor agreements (similar to an LPA), tax transparency for non-Luxembourg investors, and a fast setup. It is particularly popular for private equity, real estate, and infrastructure funds.

For alternative investment funds (RAIF, SIF, SICAR) above €100M in AUM — or above €500M for unleveraged, closed-end funds — an authorised AIFM is required under AIFMD. Below these thresholds, a registered (sub-threshold) AIFM may suffice. For UCITS funds, an authorised ManCo (Management Company) is always required. Fund XP assists in selecting and appointing the right AIFM or ManCo, whether a third-party or your own proprietary ManCo.

Luxembourg is the world's second-largest fund domicile with over €5.8 trillion in AUM. Key advantages: EU passport for marketing across all 27 member states, a mature and fund-friendly CSSF regulatory framework, one of the widest networks of double tax treaties globally, a deep ecosystem of specialised service providers, political and fiscal stability, and a highly skilled multilingual workforce. For UCITS in particular, the Luxembourg label is recognised and trusted by institutional investors worldwide.

There is no statutory minimum AUM to launch, but practical economics apply. UCITS funds typically require at least €20–30M to cover ongoing costs. For RAIFs and SIFs, the structure can be viable from €5–10M for closed-end strategies. Luxembourg law requires UCITS funds to reach minimum net assets of €1.25M within 6 months of authorisation. Fund XP will assess economic viability and help structure your fund costs according to your strategy and investor base.

Timeline depends on the vehicle: a RAIF can be structured and launched in 4–8 weeks, as no CSSF authorisation is required. A SIF or SICAR requires CSSF approval, typically 3–6 months. A UCITS fund requires both ManCo and fund authorisation, generally 4–6 months. Fund XP coordinates the full process — from legal structuring to regulatory filing and operational go-live — to minimise time to first close.

Fund XP provides end-to-end IT & consulting services for fund launches in Luxembourg. We act as your single point of contact for: selecting and coordinating all service providers (AIFM/ManCo, depositary, administrator, auditor, legal counsel), regulatory structuring and filing, fund accounting and NAV setup, investor portal and reporting technology, and compliance framework implementation. From concept to first NAV — we get your fund operational efficiently and on time.