As part of this , we asked nine figures in Luxembourg’s financial industry about the strengths and weaknesses of the grand duchy’s private market funds sector. Alessia Lorenti, independent non-executive director, told Paperjam:
“Well before the Alternative Investment Fund Managers Directive (AIFMD) implementation just over 10 years ago, Luxembourg had developed a strong expertise in the private capital asset class as domicile of choice for asset holding vehicles, with an in depth understanding of the transaction specifics and life cycle. The attractive investment fund toolbox is particularly well adapted to private market funds, the reserved alternative investment fund (Raif) and Luxembourg limited partnership have proven very successful.”
Read also
“Luxembourg’s wealth of experience in private market funds and cross border distribution provides a solid foundation for the developments in the retailisation of private assets via Eltifs [European long-term investment funds].”
“The main challenge the sector faces are related to human capital, difficulties in talent attraction and retention, high turnover rates in certain roles, increasing employment costs and indexation.”
This article first appeared in the October 2024 on the private markets & fund ecosystem.