6,100 AIFs were managed from Luxembourg in 2020, according to Luxembourg’s financial regulator, the CSSF. Photo: Shutterstock

6,100 AIFs were managed from Luxembourg in 2020, according to Luxembourg’s financial regulator, the CSSF. Photo: Shutterstock

In 2020, the Luxembourg market for alternative investment funds reached a record high, both in terms of net asset value and number of funds under management, according to statistics from the Commission de surveillance du secteur financier (CSSF).

The Luxembourg market for alternative investment funds (AIFs) has never been in better shape. As at 31 December 2020, the total net asset value of AIFs reached €1,042bn, according to statistics published on 22 April by the financial sector regulator CSSF, which are based on data reported by fund managers.

Although Luxembourg is home to 6,100 AIFs, the local market is somewhat concentrated, with 40% of the total net asset value on the market concentrated in 3% of the largest AIFs.

In general, the net asset value of AIFs remains below the average of the Sicavs. The CSSF notes that 69% of AIFs managed in Luxembourg have a net worth of less than €100m.

The market is also experiencing concentration on the investor side. The top five investors alone account for 88% of the net asset value of the market.

In 2020, the AIFM sector continued to grow, but at a slower pace. Alternative funds grew by 16% in terms of net worth. For comparison, the total net worth of the local market was €567bn in 2017, rising to €653bn in 2018, and €904bn in 2019.

The number of alternative funds is growing at a slower pace. In 2020, 6,100 alternative funds were managed from Luxembourg, compared with 4,106 in 2017.

According to statistics published by the European Securities and Markets Authority (Esma), Luxembourg contributed 16% of the total net asset value of AIFs in Europe in 2020.

This story was first published in French on . It has been translated and edited for Delano.