IDEAS home Printed from https://ideas.repec.org/p/bcl/bclwop/bclwp206.html

Private market funds in Luxembourg

Author

Listed:
  • Jeff Majerus

  • Romuald Morhs

Abstract

Private market funds collect capital by issuing shares and invest the proceeds in securities that are not listed on a public market. These alternative lenders provide financing to companies in the form of private equity, private debt, and investments in real assets such as infrastructure, real estate or natural resources. Since the global financial crisis of 2008, private market funds expanded significantly and Luxembourg has become an important financial center for their domiciliation. However, while private market funds potentially have important implications for monetary transmission and financial stability, statistics on this market segment remain scarce and heterogeneous. We fill this gap by constructing a new database based on reports from the Alternative Investment Fund Managers (AIFM) to the Commission de Supervision du Secteur Financier (CSSF), as well as the reporting from investment funds to the Banque Centrale du Luxembourg (BCL). Using this novel database, we provide descriptive statistics on private market funds and identify limitations of the current reporting framework for analysing the portfolio composition and the leverage of these nonbank financial institutions. We then estimate an econometric model on quarterly data to measure the sensitivity of private market funds domiciled in Luxembourg to global macroeconomic and financial developments.

Suggested Citation

  • Jeff Majerus & Romuald Morhs, 2026. "Private market funds in Luxembourg," BCL working papers 206, Central Bank of Luxembourg.
    • Handle: RePEc:bcl:bclwop:bclwp206
    as

    Download full text from publisher

    File URL: https://www.bcl.lu/en/publications/Working-papers/206/BCLWP206.pdf
    Download Restriction: no
    ---><---

    More about this item

    Keywords

    ;
    ;

    JEL classification:

    • C81 - Mathematical and Quantitative Methods - - Data Collection and Data Estimation Methodology; Computer Programs - - - Methodology for Collecting, Estimating, and Organizing Microeconomic Data; Data Access
    • G23 - Financial Economics - - Financial Institutions and Services - - - Non-bank Financial Institutions; Financial Instruments; Institutional Investors

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bcl:bclwop:bclwp206. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: the person in charge (email available below). General contact details of provider: https://edirc.repec.org/data/bclgvlu.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.