Comprehensive Guide to Alternative Investment Fund Setup

At FundSetup, we specialize in launching fully compliant Alternative Investment Funds (AIFs) for global asset managers, family offices, UHNWIs, and institutions. With regulatory hubs across Luxembourg, ADGM (Abu Dhabi), DIFC (Dubai), and Cyprus, our end-to-end solutions include legal structuring, fund registration, accounting, investor onboarding, and compliance services.


What is an Alternative Investment Fund (AIF)?

An Alternative Investment Fund is a collective investment vehicle that pools capital from professional or qualified investors and invests in private equity, venture capital, hedge funds, real estate, infrastructure, and other non-traditional assets. Unlike mutual funds or UCITS, AIFs are typically tailored for sophisticated investors seeking diversified strategies and higher returns.

AIFs can be structured flexibly depending on the jurisdiction and offer tax efficiency, investor privacy, and reduced regulatory burdens compared to retail funds.


Why Choose FundSetup for AIF Incorporation?

With over a decade of experience, FundSetup ensures a smooth and compliant launch of your Alternative Investment Fund in globally trusted jurisdictions. We handle the entire fund lifecycle, from feasibility studies and legal advisory to fund administration and audit coordination.

Our Key Differentiators:

  • Multi-jurisdictional reach: Luxembourg, UAE (ADGM, DIFC), Cyprus

  • Regulatory expertise: RAIF, SIF, AIFMD, Exempt Funds, Qualified Investor Funds

  • Turnkey fund setup: Legal formation, NAV reporting, audit, compliance

  • Investor-ready documentation: PPM, term sheet, investment agreement

  • Ongoing support: AML/KYC, FATCA, CRS reporting, ISIN activation


Best Jurisdictions for AIF Setup

1. Luxembourg – Europe’s Gateway for Fund Structuring

Luxembourg is a premier destination for AIFs under structures like RAIF (Reserved Alternative Investment Fund) and SIF (Specialized Investment Fund). It offers:

  • Full AIFMD compliance

  • Access to the EU investor base

  • Fast-track RAIF incorporation (within 3–4 weeks)

  • Favorable tax regime

  • Wide choice of fund vehicles (SCA, Sàrl, SCSp)

2. ADGM – Abu Dhabi Global Market

ADGM provides a forward-looking regulatory environment ideal for crypto funds, VC funds, and real estate strategies:

  • 100% foreign ownership

  • FSRA-regulated environment

  • Category 3C fund manager license

  • Flexible investment strategies allowed

  • Quick registration process

3. DIFC – Dubai International Financial Centre

DIFC is a globally respected financial hub offering flexible fund structures such as:

  • Exempt Funds and Qualified Investor Funds (QIFs)

  • Cost-effective incorporation

  • Access to Middle Eastern and Asian capital markets

  • English common law framework

  • Top-tier service providers and fund administrators

4. Cyprus – Cost-Effective and EU-Regulated

Cyprus is gaining traction as a destination for Alternative Investment Funds due to:

  • Fast setup timelines

  • Low operational costs

  • Full EU passporting rights

  • Tax neutrality and dividend exemption

  • UCITS and AIF options available


Step-by-Step Process to Setup an Alternative Investment Fund

1. Initial Planning and Jurisdiction Selection

We assess your investment strategy, target investors, asset class, and capital goals to help you choose the most suitable jurisdiction.

2. Legal Structuring and Documentation

Our legal partners draft all regulatory-compliant documents including:

  • Private Placement Memorandum (PPM)

  • Articles of Association

  • Investment Management Agreements

  • Custodian and Administrator Contracts

3. Regulatory Licensing and Registration

We liaise with financial regulators (CSSF, FSRA, DFSA, CySEC) to:

  • Register your fund

  • Obtain the fund manager or GP/LP structure approval

  • Activate ISIN codes and regulatory filings

4. Fund Administration and NAV Reporting

We manage all operational aspects post-launch:

  • Daily/weekly/monthly NAV accounting

  • Financial statement preparation

  • Audit coordination with Big 4 or local firms

5. Investor Onboarding and Compliance

We implement a fully compliant AML/KYC onboarding process integrated with FATCA/CRS, enabling seamless capital inflow from global investors.


Documents Required to Launch an AIF

To begin your AIF setup, you will need:

  • Identity verification documents for fund managers and directors

  • Business plan and investment strategy

  • Proof of address and source of funds

  • Legal entity documents for GP/Management company

  • Risk management and valuation policies


ISIN Activation and NAV Reporting Services

ISIN (International Securities Identification Number) registration is crucial for fund visibility and transparency. We coordinate with relevant authorities to:

  • Secure ISIN codes

  • Register funds on Bloomberg or Morningstar

  • Facilitate NAV reporting and investor fact sheets


Fund Compliance, AML & Audit Coordination

FundSetup maintains strong relationships with approved auditors and compliance officers across all jurisdictions. We ensure:

  • Ongoing compliance with AML, KYC, AIFMD, FATCA, CRS

  • Appointment of regulated depositories or custodians

  • Preparation of audited annual financial statements

  • Filing with local regulators and tax authorities


Timeframe to Launch an AIF

JurisdictionEstimated Time to Launch
Luxembourg (RAIF)3–4 weeks
ADGM (Crypto/VC Fund)6–8 weeks
DIFC (QIF/Exempt Fund)5–6 weeks
Cyprus (AIF)4–6 weeks

Why AIFs are Ideal for Global Investors

Alternative Investment Funds are engineered to attract professional investors with high-net-worth profiles. Benefits include:

  • Tailored strategies not bound by retail limitations

  • Low regulatory overhead with proper risk disclosures

  • Access to emerging asset classes: crypto, NFTs, renewables, etc.

  • Greater flexibility in leverage, redemption, and lock-in structures


Contact Us to Launch Your AIF Today

Whether you’re seeking a RAIF in Luxembourg, crypto fund in ADGM, or a QIF in DIFC, FundSetup has the local expertise and global network to help you launch efficiently and stay fully compliant.

📞 Call Now: +971 58 588 2014
📧 Email: [email protected]

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