Another aspect to bear in mind for the capital base of a reserved alternative investment fund (“RAIF”) is the timing to reach the minimum net assets. 

For a common fund (fonds commun de placement - “FCP”), the 1,250,000 euros minimum net assets must be reached within a period of 12 months following the entry into force of the management regulations of the FCP.

For an investment company with variable capital (“SICAV” - société d’investissement à capital variable), this minimum of 1,250,000 euros must be reached within 12 months following the incorporation of the SICAV.

And finally, for RAIFs which do not have the legal form of a SICAV / FCP, this amount must also be reached within 12 months.

What is the percentage to be paid up at subscription?

The capital of a SICAV must be entirely subscribed, and at least 5 per cent of the subscription amount per share or unit must be paid up in cash or by means of a contribution other than cash.

If the reserved alternative investment fund is constituted in the form of a public limited company, a corporate partnership limited by shares or a private limited company, its capital must be entirely subscribed and at least 5 per cent of each share or unit must be paid up in cash or by means of a contribution in kind.

References: Articles 20, 25, 26(3), 32(1), 32(6) of the amended law of 23 July 2016 on RAIFs; Minimum Net Assets (RAIF), August 31, 2020, Bertrand Mariaux.

*Podcast #255:

*YouTube Video 244|: 

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)