Looking to unlock European capital as a US asset manager? Luxembourg continues to lead the way.
We were delighted to support ALFI - Association of the Luxembourg Fund Industry at their recent roadshows in Chicago and New York City, with Cyril Schopfer, Antoinette Behan and Mattéo FERRER, where one message came through clearly:
🔴Luxembourg remains Europe’s leading gateway for global fund distribution.
With around EUR 8.3tr in total fund assets domiciled in Luxembourg, alternatives investments account for approximately EUR 3tr representing over one-third (36%) of the market and continues to grow at around 20% year-on-year, reinforcing Luxembourg’s position as Europe’s leading fund domicile jurisdiction.
US fund managers are increasingly using Luxembourg to tap into Europe’s deep pool of institutional and private wealth, supported by a mature ecosystem of AIFMs, advisers, depositaries and administrators.
Key themes from the discussions included:
➡️Innovation through digital assets, tokenization and AI
Tokenization is moving from concept to commercial reality, with Luxembourg positioning itself as a leading jurisdiction for digital‑asset and tokenized fund structures.
Discussions highlighted how tokenization and AI can drive efficiency, improve transparency, enable fractional ownership, broaden investor access, and ultimately reshape how funds are distributed and serviced across the value chain.
➡️Retailization of alternatives
The rapid expansion of private markets into the wealth segment, with structures such as ELTIF 2.0, Part II funds and semi‑liquid/evergreen vehicles enabling access for private banks, wealth managers and HNW investors. These wrappers are designed to offer controlled liquidity while opening traditionally illiquid strategies like private equity, infrastructure, private debt and real estate to a broader audience.
➡️Regulation: evolution, not revolution
AIFMD II was framed as “evolution rather than revolution”, reinforcing an already robust framework.
Enhancements around loan origination, delegation oversight, liquidity management tools and the ongoing discussion on a depositary passport aim to strengthen investor protection and market stability, without disrupting managers’ ability to raise and deploy capital across Europe.
By combining scale, growth, innovation and world‑class servicing, Luxembourg remains a natural choice for US fund managers expanding into Europe and we are proud to support that journey.
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