Diverse Investment Horizons: Luxembourg’s Perspective on Alternative Funds

25/03/2024

Alternative investment funds showcasing exposure to private equity, real estate, infrastructure, and debt are experiencing a surge in popularity within Luxembourg. Examining prevailing market trends, Kelly Anckenmann, Executive Director—Business Development and Marketing, shed light on the current landscape.

Luxembourg stands out as a financial hub, boasting a multilingual workforce, economic stability, and a well-established infrastructure of legal, tax, and financial professionals ready to assist clients from diverse jurisdictions. It acts as a pivotal location for innovative financial products, including alternative investment funds.

The alternative investments market, encompassing private equity, real estate, infrastructure, and private debt, is witnessing rapid global growth. Luxembourg has experienced robust expansion. Against the backdrop of equity market corrections and the ascent of inflation, investors are reevaluating their portfolios, with a focus on commercial real estate and private debt as potential hedges against inflation. Infrastructure funds, known for their longer-term horizons and resilience, offer investors returns that may not be directly correlated with equity markets.

Anticipating the trends for 2024, there is an expected increase in interest in infrastructure funds, real estate funds, and evergreen funds, as investors seek alternatives to traditional equities and bonds.
The growth in this sector brings to a surge in demand for AIFM services with local expertise, and specialized knowledge is crucial to providing comprehensive and tailored solutions to Fund Managers. Despite their growing popularity, Alternative Investment Funds encounter challenges, this is why it is important to Fund Managers to be able to rely on a trusted partner with experience to be able to focus on their core activity: Investment Management.

In this landscape, why Funds Avenue?

Funds Avenue S.A. is a management company pursuant to Chapter 15 of the Law dated 17 December 2010 relating to undertakings for collective investments (UCITS Management Company) and is also approved as Alternative Investment Fund Manager (AIFM) pursuant to Chapter 2 of the Law dated 12 July 2013 relating to AIFMs.

Funds Asset Management S.A. is an independent third-party investment fund manager providing governance and substance solutions to Fund managers from around the globe.

Based in Luxembourg, the leading European fund domicile, Funds Avenue S.A. operates in an open architecture and is well placed to help asset managers meet.

At Funds Avenue we will guide you through the complex regulatory challenges and provide you with a best-in-class service.

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