private markets

The cold, wet, and miserable weather does nothing to dampen Jason ‘IPO’ Lee’s spirits as he arrives at Findel after a grueling journey from Hong Kong. He has chosen Luxembourg as a launchpad for the European arm of his AI fund.

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.

Plans to increase Europe’s capital markets capacity hinge on giving retail investors access to private assets, but liquidity remains a sticking point. Evergreen funds, designed to offer investors some liquidity in otherwise illiquid assets, are being touted as a solution.

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.

Luxembourg’s financial watchdog, the CSSF, has made important changes to its rules for valuations of investment funds, the first in two decades. While many things stay the same, some key updates—like lowering limits for money market funds and adding new checks before making investment decisions—are aimed at tightening control and providing clearer guidance.

Euroclear, the Brussels-based securities custodian and settlement giant, has taken a significant step forward in the private markets space by securing a partnership with BlackRock, the world’s largest asset manager.

Investment advisors in both the US and Europe have been expressing a desire to increase allocations to alternatives, but the average allocation has remained modest, according to gatekeeper surveys by Cerulli and PGIM.

Moonfare is offering a golden ticket for the masses with its new app, making private equity investing as simple as ordering a pizza.

European ambitions to boost capital flow through increased retail investment, exemplified by the European Long-Term Investment Fund (Eltif), hinge on tax incentives to encourage widespread savings, essential for success.

The rapid growth of ESG investment has not left private markets behind. LPs and GPs, having taken stock of where the wind is blowing, have moved towards an ‘ESG or nothing’ investment philosophy, with the majority planning to cease investing in or promoting non-ESG private markets products by the end of 2025, according to a new Luxembourg study. This development is part of a paradigm shift in the global private markets landscape.