Luxembourg private debt funds managed €56bn at the end of the first of the year, according to a study released by the consultancy KPMG and the Association of the Luxembourg Fund Industry during an alternative funds conference this week.

Camille Thommes, director general of the trade group, stated in a press release:

“Non-bank intermediation, such as financing through private debt funds, is gaining further momentum. Private debt funds are a growth stimulator and important source of financing for the real economy. Along with the banking industry, they can help businesses raise capital and address the imbalance of liquidity supply and demand. This survey shows that Luxembourg private debt funds are more sought-after than ever.”

The main investment strategies are direct lending (32%) and senior loans (25%), the study said. Loan funds mainly target investments in the EU (35% of the total), other European countries (28%) and North America (14%).

The survey also found that 74% of Luxembourg debt fund promoters are based in Europe, with 25% from North American and 1% from the Middle East & Africa. The vast majority of investors are institutional (78%).

KPMG and ALFI released “Private debt fund survey 2019” on 27 November.