Luxembourg: The Clear Alternative
Over the last 20 years Luxembourg has built up its position as the most popular domicile for undertakings for collective investments in transferable securities (UCITS). At the same time Luxembourg has developed a strong track record in alternative investment products and bespoke investment structures such as hedge funds and funds of hedge funds, private equity vehicles and real estate funds.
In 2004 and 2007 respectively Luxembourg created the Investment Company in Risk Capital (SICAR) and the Specialised Investment Fund (SIF) in anticipation of a changing regulatory environment for alternative investment funds. An Undertaking for Collective Investment (UCI) established under Part II of the Law of 2010 is an investment fund that does not invest in transferable securities.
An additional – complementary – alternative investment fund regime which is similar to both the SIF and SICAR regimes was recently introduced by the so called Reserved Alternative Investment Fund (RAIF).