3 minutes read
Why Luxembourg stands out
As Co-Chair of the Private Funds Committee, I see firsthand how our industry thrives on confidence, flexibility, and innovate, and Luxembourg delivers on all three. From a trusted tax and regulatory environment to an unrivalled toolbox of fund structures, we provide solutions that adapt to investors’ needs, whether global institutional investors, private wealth clients, semi-professional investors, or increasingly retail investors. Add to this a community of seasoned experts, best-in-class service providers, and efficient cross-border distribution, and the picture becomes clear: Luxembourg is the natural hub for Private Equity and beyond.
Contributing to this paper as co-chair of the Private Funds Committee has been a privilege. Our findings confirm Luxembourg’s unique ability to adapt and innovate in challenging times. From evergreen funds to hybrid structures, the flexibility of our market is unmatched, and that’s what keeps Luxembourg at the forefront of global private markets.
The paper highlights not only the dominant structures and tools at play, but also the trends shaping tomorrow: from the rise of evergreen funds to shifting investor preferences. Luxembourg is not standing still, we are innovating, evolving, and helping to drive the global private markets industry forward. The analysis dives deep into market data and the dynamics driving product selection. Structures such as the SCSp and RAIF maintain their commanding lead for institutional strategies, while the Part II UCI continues to play a vital role in meeting high-end retail and private wealth demand.
Navigating market headwinds
The Private Equity fund industry faces persistent challenges, geopolitical uncertainty and still relatively elevated interest rates among them. Yet, some segments are thriving: secondaries vehicles posted a record-breaking first half at the 2025 mid-year point, raising over EUR 80 billion. In contrast, overall fundraising is down 17% year-on-year, with EUR 383 billion raised by mid-year, marking the weakest point since the COVID-19 pandemic.
Liquidity needs from limited partners remain a recurring theme, driving innovation in fund structures. Evergreen funds, propelled by private wealth demand, continue to gain momentum. Hybrid solutions, such as vintage and NAV-based vehicles with run-off mechanics, are also on the rise. The ability to tailor solutions to investor needs is more critical than ever.
Looking ahead
One standout takeaway from our market sentiment survey: a moderate but steady improvement in the fundraising climate appears to be on the horizon. Luxembourg is exceptionally well positioned to benefit from this much-anticipated rebound.
It was a pleasure to work with the Private Funds Committee on this market trends paper. A sincere thanks to LPEA, Preqin and all LPEA members who participated in the accompanying market sentiment survey.
To read the story of why Luxembourg continues to stand out as the home of choice for private markets, read the full publication Structuring & Market Trends Paper.
