The Central Bank of Luxembourg has published a research paper on private market funds domiciled in Luxembourg, assessing their scale, structure and potential financial stability concerns linked to leverage and opacity. The study aims to address limited and heterogeneous existing statistics by building a new database that combines Alternative Investment Fund Managers’ reports submitted to the Commission de Surveillance du Secteur Financier with the central bank’s investment fund statistical collection. Using this dataset, the authors estimate total net assets of Luxembourg-domiciled private market funds at EUR 1.61 trillion at end-2024, with closed-ended vehicles managing more than 80% of assets and structures not under direct CSSF supervision accounting for around two-thirds of assets under management. Private equity represents 49% of activity, followed by real assets funds (22%), private debt funds (20%) and funds of funds (9%). Portfolio holdings largely consist of debt instruments and equity issued by special purpose vehicles used to structure investments, which the paper argues makes it difficult to measure geographic allocation and leverage accurately using immediate-counterparty-based statistics. An econometric model links quarterly asset growth to equity market developments and procyclicality, with exchange rates and global interest rates also showing significant effects on activity and euro valuations.
Central Bank of Luxembourg 2026-03-31
Central Bank of Luxembourg publishes study estimating Luxembourg-domiciled private market funds at EUR 1.61 trillion and detailing data gaps and market sensitivities
The Central Bank of Luxembourg has published a research paper on Luxembourg-domiciled private market funds, constructing a new database to assess their scale, structure and potential financial stability risks. The study estimates total net assets at EUR 1.61 trillion at end-2024, with closed-ended vehicles managing over 80% of assets and non-directly supervised structures accounting for around two-thirds, and finds activity is largely driven by private equity and real assets, with asset growth linked to equity markets, exchange rates and global interest rates.