Specialized Investment Funds are the most recent investment vehicle available under Luxembourg Law, a corporate and tax jurisdiction which - over time - has been offering, to the international investment community, several very popular and advanced investment tools. The Law of 13 February 2007 on Specialized Investment Funds (SIF Law), which entered into force on the same date, has been designed for qualified investors. The SIF Law will offer new opportunities for the Luxembourg fund industry, regardless of the sector. It is likely that the flexible provisions regarding the organization and the operating rules for the vehicle, as well as the flexibility regarding eligible assets, will specifically benefit the real estate sector, the hedge fund sector and the private equity sector. This comprehensive article provides a thorough description and analysis of this vehicle.