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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
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    References listed on IDEAS

    as
    1. Robert S. Harris & Tim Jenkinson & Steven N. Kaplan, 2014. "Private Equity Performance: What Do We Know?," Journal of Finance, American Finance Association, vol. 69(5), pages 1851-1882, October.
    2. Kerstin Bernoth & Roberta Colavecchio, 2014. "The macroeconomic determinants of private equity investment: a European comparison," Applied Economics, Taylor & Francis Journals, vol. 46(11), pages 1170-1183, April.
    3. Fernando Avalos & Sebastian Doerr & Gabor Pinter, 2025. "The global drivers of private credit," BIS Quarterly Review, Bank for International Settlements, March.
    Full references (including those not matched with items on IDEAS)

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    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

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