“The double-digit growth rates registered over the recent past, both in assets under management and number of private asset vehicles, are a testimony of Luxembourg’s international success,” said Thommes.

For this, he credits a number of efforts: “The modernisation of our legal toolkit with the creation of the Reserved Alternative Investment Fund, as well as the introduction of the limited partnership structure were determining factors in the strong progress of this segment in Luxembourg.”

He also believes Alfi and its working groups have done much to make Luxembourg attractive. “Alfi is at the forefront of regulatory developments in the private assets space such as the review of AIFMD and ELTIF 2.0. The debates around expanding the access of private assets to retail investors are gaining ground as regulations start to loosen and governments recognise the need for capital sourced from the private sector.”

For 2023, Thommes is optimistic. “The democratisation of private assets represents a growth opportunity for Luxembourg in the years to come,” he concludes.