As we previously wrote a reserved alternative investment fund (RAIF) is limited to well informed investors. Well informed investors must be able to assess the risks associated with an investment in a RAIF. The well informed investor must have stated in writing that she/he adheres to the definition of well informed investors (as defined by the law of 23 July 2016 on reserved alternative investment funds as amended, the RAIF Law). The status of well informed investors includes:
(i) institutional investor(s) or professional investor(s) investing a minimum of 125,000 euros in the RAIF; or
(ii) any other investor(s) who have been assessed by a:
credit institution,
investment firm, or
management company;
certifying the investor’s:
expertise,
experience, and
knowledge;
in adequately appraising an investment in the RAIF.
It is worth noting as well that the RAIF must have the necessary means to ensure compliance with the conditions laid down above. And finally, these conditions are not applicable to the directors and other persons involved in the management of the RAIF.
References: article 1(1)(c) and 2 of the RAIF Law; What is a RAIF?, Bertrand Mariaux, June 17, 2020.
*Podcast #248:
*YouTube Video 237|:
Bertrand Mariaux, Avocat à la Cour, LL.M. (hons.)
Prestation de serment (Swearing-in oath): Luxembourg (2011), Certificat d’Aptitude à la Profession d’Avocat, École de Formation professionnelle des Barreaux de la Cour d’appel de Paris (2009), Bond University (LL.M. (distinct.), International Legal Practice, 2010), Université Sorbonne Paris Nord & University of Limerick (Master in European & International Law - major in economics, 2008), certified Expert in Microfinance (Frankfurt School of Finance & Management, 2015), social entrepreneurship (University of Oxford, 2015 & The Wharton School of Social Policy & Practice, 2014) and social & solidarity economy (International Labour Organization Academy - Social & Solidarity Economy, Organisation Internationale du Travail - Économie Sociale et Solidaire, 2017)