Raymond Frenken

Ireland’s decision not to introduce its own version of Luxembourg’s highly successful Reserved Alternative Investment Fund (Raif) signals a cautious approach in the global race for private market leadership and reflects concerns over potential problems with liquidity and valuations in this market.

With the European Commission confirming on Tuesday that the Level 2 Regulatory Technical Standards (RTS) for the revised European Long-Term Investment Funds (Eltifs) regime are on track, the alternatives industry is shifting its focus towards overcoming operation challenges such as on co-investments, liquidity management and handling different tax regimes across the EU market.

The annual Luxembourg Private Equity Association (LPEA) Insights Conference drew over 1,000 professionals to the Grand Duchy this year, underscoring the nation’s status as the largest global private markets hub outside the United States.

Martine Solovieff, Luxembourg’s top criminal prosecutor, has issued a stark warning regarding the country’s persistent struggle with financial crime investigations, citing overwhelming caseloads and staffing shortages as key obstacles.

The oil market is on tenterhooks as the conflict in the Middle East escalates, with much hinging on Israel’s next move in response to Iran’s recent missile attack. While oil prices have risen, the market remains surprisingly calm, despite the looming threat of supply disruptions.

As Luxembourg’s financial ecosystem adjusts to the open finance revolution, wealth and asset managers must navigate a range of hurdles to stay competitive.

After an initial surge following the reopening of China’s stock exchanges, investor enthusiasm quickly evaporated as hopes for detailed stimulus measures from Beijing fell short.

Private markets have transformed from a niche allocation into a mainstream investment strategy, and this shift is reshaping portfolios globally. Navigating this increasingly crowded space requires a sharp focus on value rather than cost, according to Duncan Lamont, head of strategic research at Schroders.

The Luxembourg Stock Exchange is exploring ways to create public listings of European Long-Term Investment Funds, private market vehicles that for now are the exclusive domain of high-net worth individuals. A senior official said the bourse, also known as LuxSE, sees a particular role for itself when it comes to enhancing the exit opportunities.

In a move to strengthen valuation practices across the investment fund industry, Luxembourg’s financial supervisor CSSF on Wednesday unveiled a glimpse of plans to revise its valuation guidelines for investment fund managers. The update is due in 2025.