23 October 2024 | Press Releases
Luxembourg Private Debt Fund Market surpasses EUR 500 billion, KPMG/ALFI survey finds.
The annual KPMG Private Debt Fund Survey 2024, commissioned by the Association of the Luxembourg Fund Industry (ALFI), once again shows substantial growth in the Luxembourg private debt industry. Despite global market challenges, AuM increased by 21% to €510 billion from June 2023 to December 2023. This compounds on last year’s AuM growth of 51%, highlighting the ongoing appetite for private debt funds domiciled in Luxembourg.
Julien Bieber, Partner Tax, Alternative Investments and Co-Head of Private Debt at KPMG in Luxembourg said: “With greater recognition from the industry, the Luxembourg private debt fund market has become increasingly mature. Luxembourg is now recognised as one of the most attractive domiciles for private debt funds, reflected in the impressive growth of assets under management. In the future, the AIFMD II will offer a more robust and aligned framework for loan origination, which is poised to harmonise regulations across Europe. Additionally, a confluence of favourable factors such as high interest rates, growing appeal among investors, demand for tailored solutions by borrowers, and a shift away from traditional bank lending has shaped a dynamic landscape.
“Lastly, we believe Luxembourg's leading position will be sustained through its strategic use of data and technology, access to a highly skilled and diverse workforce, expansion through retailisation, and a supportive regulatory framework.”
Serge Weyland, CEO at ALFI, commented: “The private debt market has shown remarkable resilience and consistent growth amid several years of global market challenges. This survey highlights the sustained appetite for private debt, with Luxembourg emerging as the domicile of choice, supported by its robust regulatory environment, political stability, and highly skilled workforce. Looking ahead, we expect the growing momentum for retailisation to bring further sophistication and opportunities to the Luxembourg private debt market.”
Key findings of the survey include:
Download the KPMG/ALFI Private Debt Fund Survey 2024.
Download the press release in pdf.
For more information, please contact:
Peregrine Communications
ALFI@peregrinecommunications.com
ALFI
Luis Salerno
ALFI Head of Communications Luis.Salerno@alfi.lu
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Notes to editors:
About ALFI
The Association of the Luxembourg Fund Industry (ALFI) represents the face and voice of the Luxembourg asset management and investment fund community, championing mainstream, private assets and sustainable investing. ALFI seeks to promote Luxembourg’s fund sector internationally, and to cultivate for the benefit of its members a collaborative, dynamic and innovative ecosystem underpinned by the most robust regulatory framework. ALFI’s ambition is to empower investors to meet their life goals.
The Association today represents over 1,4400 Luxembourg domiciled investment funds, asset management companies and a wide range of business that serve the sector. Our members are investment funds, management companies, asset managers, alternative investment fund managers (AIFMs), depositary banks, legal and consultancy firms, tax advisory firms, auditors and accountants, specialised IT and communication companies and individual members.
To keep up with all the news from ALFI and the fund industry in Luxembourg, follow us on LinkedIn, (@ALFIfunds), YouTube and Flickr.
For more information please visit www.alfi.lu.
About KPMG
As a member of KPMG International, a network of independent firms operating in 143 countries, KPMG in Luxembourg provides a full range of audit, tax and advisory services to major national and international clients active in the financial, insurance, commercial and industrial sectors.
With more than 2,000 people, KPMG in Luxembourg is one of the country’s leading audit, tax and advisory firms. Our approach to relationships and service delivery is designed to help clients exploit new opportunities, improve performance and manage risk.
We also participate in/or chair various industry groups in Luxembourg, including the “Haut Comité de la Place financière”, the Commission de Surveillance du Secteur Financier (CSSF), the Bankers’ Association (ABBL), the Association of the Luxembourg Fund Industry (Alfi) or the Luxembourg Institute of Directors (ILA).