Alternative investment funds (AIFs) are for “well-informed” investors, such as institutional, professional, and qualified investors, according to Luxembourg For Finance.
AIFs therefore refer to investment funds not already covered by the European Directive on Undertakings for collective investment in transferable securities (UCITS).
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This includes hedge funds, funds of hedge funds, venture capital and private equity funds and real estate funds.
As one of the first European countries, the Luxembourg Parliament adopted the law transposing the Alternative Investment Fund Manager Directive (AIFMD) into Luxembourg law on 10 July 2013.
Specific exemptions from the definition of AIF are holding companies, joint ventures, securitization special purpose vehicles, pension funds, employee participation or savings schemes and family offices.
The European Securities & Markets Authority (ESMA) has issued guidelines on key concepts of the Alternative Investment Fund Managers Directive (AIFMD), including on the definition of an AIF.
