From a global perspective the next few years should represent an era of significant continued growth for alternative investment funds, having witnessed global AuM tripling since 2008 to reach above 10 trillion US dollars as at June 2020.
Over the last three years, net assets under management in regulated alternative funds in Luxembourg have increased by nearly 30% (including for private equity, real estate, private debt and other alternatives such as infrastructure or hedge funds). The recent reports highlight robust growth across all asset classes for Luxembourg-domiciled funds as they become increasingly attractive outside the EU, both in terms of new AIFs set up in Luxembourg and the breadth of non-European institutional investment into these funds. With over three quarters of investors expecting to increase their allocation to alternatives, Luxembourg-domiciled AIFs are in a strong position to capitalise on this growth in interest and investment.
Luxembourg is today a major centre for alternative asset classes with more than EUR 843 billion of assets managed by alternative fund managers.
Luxembourg offers a comprehensive and consistent product range for alternative players willing to distribute their products across Europe and to fully benefit from the marketing passport introduced by the AIFM Directive.