Luxembourg Glossary

Key Terms in Our Investment Platform

This glossary explains the core legal and regulatory terms behind Powerstorm’s Luxembourg RAIF investment structure. These definitions help investors and partners understand the institutional framework that governs our platform.

FATCA — Foreign Account Tax Compliance Act

U.S. regulation requiring Luxembourg funds to identify and report U.S. investors to the IRS. This ensures compliant participation of U.S. capital in cross-border structures.

CRS — Common Reporting Standard

Global reporting framework used for non-U.S. investors. Luxembourg funds must identify investors and automatically share tax-relevant information with the correct jurisdiction.

AML — Anti–Money Laundering Compliance

European category for private investment vehicles (real assets, infrastructure, energy, private equity). A RAIF is a specific type of AIF with fast setup and institutional governance.

RAIF — Reserved Alternative Investment Fund

Luxembourg’s professional-investor fund regime. A RAIF provides:
– Rapid formation
– Umbrella structure with multiple compartments
– AIFM-level supervision
– Eligibility for international LPs

SICAV — Société d’Investissement à Capital Variable

A fund format where capital increases with new subscriptions and decreases with redemptions. Most RAIFs, including ours, are SICAV-RAIFs due to their flexibility.

Compartment

A ring-fenced investment unit inside the RAIF. Each compartment:
– Has its own strategy
– Has its own investors
– Has its own SPVs
– Is protected from the liabilities of other compartments
It scales multiple strategies under one fund umbrella.

SPV — Special Purpose Vehicle

A project-level company owned by a specific RAIF compartment. Used to isolate assets such as wind parks, infrastructure sites, or digital assets. SPVs keep each project legally isolated and protect investors from cross-project risk.

Feeder Fund 

A regional vehicle that aggregates many investors into one LP position into the RAIF.
Used for:
– U.S. Reg A
– U.S. Reg D
– APAC high-net-worth
– Groups of smaller LPs
Why feeders exist: They simplify FATCA/CRS/AML, reduce administration, and allow the RAIF to onboard one entity instead of hundreds of individuals.
Example: If $20M is raised in the U.S., the investors enter a U.S. feeder. The feeder becomes the LP in the RAIF compartment.

LP — Limited Partner

The investor in a RAIF compartment. LPs are passive and protected by limited liability.

CSSF — Commission de Surveillance du Secteur Financier

Luxembourg’s financial regulator. The CSSF supervises the AIFM and validates RAIF registration. This is the nearest equivalent to the “SEC” in the Luxembourg fund environment.

Luxembourg Glossary

Key Terms in Our Investment Platform

This glossary explains the core legal and regulatory terms behind Powerstorm’s Luxembourg RAIF investment structure. These definitions help investors and partners understand the institutional framework that governs our platform.

FATCA

Foreign Account Tax Compliance Act

U.S. regulation requiring Luxembourg funds to identify and report U.S. investors to the IRS. This ensures compliant participation of U.S. capital in cross-border structures.

CRS

Common Reporting Standard

Global reporting framework used for non-U.S. investors. Luxembourg funds must identify investors and automatically share tax-relevant information with the correct jurisdiction.

AML

Anti–Money Laundering Compliance

European category for private investment vehicles (real assets, infrastructure, energy, private equity). A RAIF is a specific type of AIF with fast setup and institutional governance.

RAIF

Reserved Alternative Investment Fund

Luxembourg’s professional-investor fund regime. A RAIF provides:
– Rapid formation
– Umbrella structure with multiple compartments
– AIFM-level supervision
– Eligibility for international LPs

SICAV

Société d’Investissement à Capital Variable

A fund format where capital increases with new subscriptions and decreases with redemptions. Most RAIFs, including ours, are SICAV-RAIFs due to their flexibility.

Compartment

A ring-fenced investment unit inside the RAIF. Each compartment:
– Has its own strategy
– Has its own investors
– Has its own SPVs
– Is protected from the liabilities of other compartments
It scales multiple strategies under one fund umbrella.

SPV

Special Purpose Vehicle

A project-level company owned by a specific RAIF compartment. Used to isolate assets such as wind parks, infrastructure sites, or digital assets. SPVs keep each project legally isolated and protect investors from cross-project risk.

Feeder Fund 

A regional vehicle that aggregates many investors into one LP position into the RAIF.
Used for:
– U.S. Reg A
– U.S. Reg D
– APAC high-net-worth
– Groups of smaller LPs
Why feeders exist
They simplify FATCA/CRS/AML, reduce administration, and allow the RAIF to onboard one entity instead of hundreds of individuals.
Example
If $20M is raised in the U.S., the investors enter a U.S. feeder. The feeder becomes the LP in the RAIF compartment.

LP

Limited Partner

The investor in a RAIF compartment. LPs are passive and protected by limited liability.

CSSF

Commission de Surveillance du Secteur Financier

Luxembourg’s financial regulator. The CSSF supervises the AIFM and validates RAIF registration. This is the nearest equivalent to the “SEC” in the Luxembourg fund environment.