Private market funds in Luxembourg

Jeff Majerus () and Romuald Morhs ()

No 206, BCL working papers from Central Bank of Luxembourg

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.

Keywords: Private market funds; statistical methodology (search for similar items in EconPapers)
JEL-codes: C81 G23 (search for similar items in EconPapers)
Pages: 31 pages
Date: 2026-03
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Persistent link: https://EconPapers.repec.org/RePEc:bcl:bclwop:bclwp206

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