Breaking the mould
The stats don’t lie. Luxembourg is by far the dominant domicile for private equity in Europe.
The total number of regulated PE funds domiciled in Luxembourg in 2022 reached 1,369, according to data from Monterey Insights, with Jersey, its closest competitor, recording less than half that number. If you include unregulated funds, the total number for Luxembourg in 2022 climbs to more than 4,000, up from just 1,651 in 2018.
Preqin data shows an even greater market share, with more than 50% of all private equity funds and 90% of private debt funds launched in 2022 domiciled in Luxembourg.
The secret to the country’s success was the implementation of a solid regulatory framework at just the right time to reap the benefits...