Alternative Investment Fund Managers Directive (AIFM)

The Luxembourg parliament passed the draft law aiming to enact the Alternative Investment fund Managers Directive (AIFMD) in national law on 10 July 2013.

The adoption of the AIFMD represents an opportunity for Luxembourg to create a specific status for Special Limited Partnership Companies giving promoters of alternative funds an exclusive jurisdiction for domiciling their funds and holding structures of their investments.

Moreover, the new law establishes a special tax regime with a reduced tax rate on carried Interest with a view to attracting fund managers to Luxembourg.