INVESTMENT CENTER LUXEMBOURG

Over the last decade, Alternative Investments have established themselves as a respected asset class among investors. Recent market data shows that Alternative Investments currently represent 10% of the investment holdings by institutional investors.  Their asymmetric risk profile and low correlation with stock market fluctuations make Alternative Investments a compelling investment opportunity.

Luxembourg has recognized this trend quite early on and has established itself today as a leading EU domicile for alternative investment funds through an efficient and innovative regulatory framework. Luxembourg has witnessed both a strong growth in pure alternative investment funds and a quick rise in alternative strategies embedded within the UCITS fund over the recent years. Today, Assets under Management in alternative vehicles are estimated at EUR 400 billion. With over 4,126 fund vehicles in total and net assets of EUR 3,767 billion as per January 2017, Luxembourg is Europe’s Number 1 investment fund center and Number 2 worldwide after the USA. At the same time Luxembourg is the world’s most international fund center and over 75% of all funds with true cross border distribution are domiciled in Luxembourg.

With the introduction of the Alternative Investment Fund Managers Directive (AIFMD), Luxembourg has further increased its attractiveness as a domicile for alternative investment managers and further expanded its position as alternative investment center.  With the introduction of the new partnership regime in 2016 and the Reserved Alternative Investment Fund (RAIF), Luxembourg now offers a wide range of investment vehicles to suit both the situation and tax environment of investment managers and investors.

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