Luxembourg Alternative Investment Fund Costs

[Provident]

Hi all,

I am working as an intern within a European VC.
We are looking to raise our second fund ($25m-$50m) and domicile within Luxembourg.
Does anyone have any information on the cost of setting up a fund, preferably starting as a RAIF (due to fast speed to market) and then converting into an SIF or SICAR.
I know registration costs can be $25k, however, after scouring the web I cannot come to a total with regards to subscription fee (said to be 0.01% NAV) and running costs with tax and legal fees.
Also, the fund would be mainly investing out of Luxembourg, would there be any fees associated with that?

Any insight would be greatly appreciated.

Best,

 

[Martin Everson]

Have a read of the below and contact them directly perhaps for current on-going costs.

This hedge fund structure should work - or not?

I have come across the question "how to set-up a hedge fund" on this forum multiple times, so it could be useful to share my own -hypothetical- best practice. I hope this helps. Of course, if you spot a (potential) fault, don't hesitate to comment. I believe it could always be possible to...

www.offshorecorptalk.com

Also any reason why you are choosing Luxembourg over Ireland btw? Have a read of Luxembourg Verse Ireland below for funds.

https://www.matheson.com/docs/default-source/brexit-forum-pdfs/investment-funds/ireland-and-luxembourg-a-comparison.pdf

 

[Provident]

The fund will invest in mainland European startups, specifically Eastern Europe, LP's will be mainly from this region.
Reading this has given me a lot to think about thanks! I was under the misconception that for AIF's Luxembourg provided the best cross border capital distribution, as well as reputation. Seem Ireland checks those boxes too.

There is no income tax, subscription tax, redemption tax, corporation tax and Irish funds are exempt from Irish tax on their income or gains, irrespective of where investors are located. Ireland does not impose any annual tax comparable to the "taxe d"abonnement" in Luxembourg" <-- Key info for me thanks!

 

[Marios]

Hi all,

I am working as an intern within a European VC.
We are looking to raise our second fund ($25m-$50m) and domicile within Luxembourg.
Does anyone have any information on the cost of setting up a fund, preferably starting as a RAIF (due to fast speed to market) and then converting into an SIF or SICAR.
I know registration costs can be $25k, however, after scouring the web I cannot come to a total with regards to subscription fee (said to be 0.01% NAV) and running costs with tax and legal fees.
Also, the fund would be mainly investing out of Luxembourg, would there be any fees associated with that?

Any insight would be greatly appreciated.

Best,

hi, last time I had a similar request for one of my clients, the cost of the establishment of a RAIF was 40,000 euros. The quotation came from a law firm in Luxembourg. However my client did not proceed so I do not know have any other information to share

 

[Nicholas Van Orton]

We have set up an AIFM in Luxembourg and total cost (all-in) is about €20K. Timings, however, are not that great so you've got to load yourself up (a lot) on patience. Don't know about Ireland, but I have a feeling they may be expedite things faster.

Just my 0.02.

NVO

 

[triton080]

We have set up an AIFM in Luxembourg and total cost (all-in) is about €20K. Timings, however, are not that great so you've got to load yourself up (a lot) on patience. Don't know about Ireland, but I have a feeling they may be expedite things faster.

Just my 0.02.

NVO

Hi there, any chance of a name of a provider? I'm currently looking into Lux funds myself but was quoted three times this already!

 

[saponaire]

interested to follow up.

Any reason you looked into RAIF instead of an SLP?