These grant and restructure loans, often filling the funding gap made vacant by banks which have been less willing to lend since the global financial crisis.

Investors are overwhelmingly financial institutions, but some high net worth individuals have also been attracted. Aggregate capital invested in regulated loan funds in mid-2017 was €40bn, said an Association of the Luxembourg Fund Industry survey.

There was a 280% increase in the number of these funds from 2015 to June last year.

Alternative fund strategies will be discussed during the Alfi Private Equity and Real Estate Conference, 21-22 November 2018