Luxembourg SICAV RAIF SCA for Italian Debt Restructuring Funds

🎙️ Luxembourg SICAV-RAIF SCA for Italian Debt Restructuring Funds

Italian debt restructuring strategies demand a fund structure that can manage irregular cash flows, multi-year workouts, enforcement risk, and complex creditor negotiations. The Luxembourg SICAV-RAIF structured as an SCA has become a reference platform for private debt managers and special situations sponsors targeting Italian NPLs, UTPs, and stressed credit portfolios.

This structure combines contractual flexibility with institutional-grade governance. The RAIF regime allows rapid launch without CSSF product approval, while mandatory management by an authorised AIFM ensures full alignment with AIFMD standards. The SCA form provides a clear separation between management and investors, with a general partner controlling strategy and shareholders benefiting from limited liability.

Used as an umbrella vehicle, the SICAV-RAIF SCA supports compartments dedicated to specific portfolios, vintages, or restructuring themes. Investments are typically executed through Luxembourg or Italian SPVs, enabling ring-fencing of risk, tailored security packages, and efficient enforcement under Italian law. This architecture is well suited for hold-to-workout strategies, rescue financing, and hybrid debt-equity outcomes.

Investors value the model for its transparent governance, disciplined reporting, SPV-based asset holding, and clearly defined exit routes through recoveries, refinancings, or portfolio sales. The structure is compatible with EU professional investor marketing and widely accepted by institutional LPs.

📩 Plan your Italian debt restructuring fund in Luxembourg
Damalion supports sponsors and investors with compliant fund structuring, AIFM coordination, SPV design, and banking alignment for SICAV-RAIF SCA platforms. Contact our team to discuss your strategy: [email protected]