[SPONSORED CONTENT]
Europe holds 25% of global LPs, but what remains untapped?
Historically, European investors have favoured established buyout and infrastructure strategies, but appetite is shifting toward digital transformation. With venture ecosystems less developed than in the US, Europe offers opportunities in AI, fintech, cybersecurity and biotech. Investors are also turning to secondary markets for liquidity amid longer fund life cycles.
This demand is driving interest in tokenised funds, which convert investor shares into blockchain- based tokens. Each token represents ownership to trade, track and divide into smaller units. Tokenisation can boost accessibility, transparency and liquidity in illiquid markets such as private equity and real estate. Apex Group Luxembourg strengthened its position with the 2025 acquisition of Tokeny, an on-chain finance platform.
Which fund structures are most attractive for cross-border launches and distribution?
Luxembourg remains the leading jurisdiction, balancing regulatory rigour with operational efficiency to give investors confidence and managers flexibility. As demand for private equity, private credit and real assets grows, it continues to serve as the hub for cross-border capital raising and scalable distribution.
For managers seeking cross-border launches, the RAIF-SICAV remain the most attractive vehicles, offering flexibility, regulatory credibility and strong passporting under UCITS and AIFMD. In private markets, the Raif stands out by combining lighter regulation with robust governance, allowing quicker time-to-market while maintaining investor confidence. It can launch without direct CSSF approval yet benefits from the EU passport when managed by an authorised AIFM, making it a “gold standard” for distribution across the EU, Asia, Latin America and the Middle East.
Moreover, ELTIF 2.0 marks a significant evolution in European fund structures, blending the retail accessibility of UCITS with the long-term investment flexibility of AIFs. By allowing broader investor participation in private markets while maintaining robust regulatory safeguards, it opens new avenues for capital formation and portfolio diversification.
How does Luxembourg’s fintech hub strengthen managers’ presence and fundraising in Europe?
Luxembourg has become a digital infrastructure and fintech innovation hub, reinforcing its role as a gateway for fund managers expanding in Europe. High-grade data centres, secure connectivity and blockchain-friendly regulation has created an ecosystem that supports efficient fund administration, reporting and investor servicing.
For managers, this digital backbone streamlines compliance and operations, with tools such as automated KYC/AML checks, digital onboarding and tokenised fund structures cutting costs and speeding time-to-market. Luxembourg’ openness to DLT also supports fundraising models, including fractionalised fund interests and enhanced secondary liquidity.
A strong fintech ecosystem gives managers access to expertise in digital custody, cybersecurity and regtech, boosting resilience and transparency. Combined with Luxembourg’s long-standing reputation under UCITS and AIFMD, this mix of regulatory credibility and digital innovation makes it an attractive base for cross-border fundraising.
Apex Group Luxembourg exemplifies this shift, becoming the first in the country to administer regulated securities on blockchain, an achievement recognised with the Future of Finance Award 2025 for best tokenised fund administrator and HedgeWeek award for Fund administrator of the year in the Technology category
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“Luxembourg is a hub for digital infrastructure and fintech innovation, strengthening its role as a gateway for global fund managers seeking a stronger European footprint”
Renaud Oury, chief growth officer, Apex Group
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How is Luxembourg’s regulatory and tax appeal winning over non-European entrants?
Luxembourg’s regulatory stability and tax framework is central to its appeal for non-European fund managers and financial institutions. As one of the EU’s most established domiciles, it offers a predictable, business-friendly legal environment with consistent implementation of UCITS and AIFMD. This gives entrants confidence their funds will meet European standards while benefiting from passporting rights across the single market.
Luxembourg also offers a flexible regime with over 80 double taxation treaties, no withholding tax on fund distributions and efficient tax-neutral vehicles such as SICAVs, RAIFs and SIFs. These ensure investors avoid multiple taxation layers, preserving returns while meeting transparency standards.
Combined with political stability, a multilingual workforce and a strong track record in private equity, real estate and alternatives, Luxembourg provides non-European entrants with certainty, efficiency and access to institutional capital for scaling cross-border fundraising
What does the €7.26tn AIF market mean for managers’ opportunities and challenges?
The scale and diversity of the €7.26 trillion AIF market —spanning private equity, private debt, infrastructure, hedge funds and real estate— reflects demand for yield, diversification and real assets. With limited returns in traditional fixed income, institutional and HNW investors are increasing allocations to alternatives, driving appetite for innovative strategies, sustainable investments and private market access. For managers, this creates opportunities in capital raising, product differentiation and long-term client relationships.
Challenges remain. The AIFMD imposes strict rules on reporting, risk management and transparency, requiring costly compliance infrastructure. Competition is pressuring fees and performance, liquidity concerns persist in private markets and regulators are tightening oversight of leverage, sustainability claims and cross-border marketing. Apex has responded with investment in technology, deploying AI-poweredtools and blockchain infrastructure to improve liquidity, streamline distribution and make private markets more efficient.
What sets Luxembourg apart from other European domiciles?
Luxembourg combines regulatory credibility, flexibility and international orientation. As Europe’s largest fund centre and the 2nd largest globally after the US, it has decades of experience with UCITS and AIFs, making it the jurisdiction of choice for cross-border distribution. Its consistent application of EU directives underpins regulatory stability for managers and investors.
A range of adaptable fund structures —such as RAIF and SIF—supports strategies across private equity, real estate, infrastructure and hedge funds. Many vehicles offer fast time-to-market, tax neutrality and alignment with global investor needs, reinforced by Luxembourg’s extensive network of double taxation treaties.
The jurisdiction also benefits from an ecosystem of expertise, with a multilingual workforce, specialist service providers and a strong legal and advisory community. It is Apex Group’s largest service hub, with more than 1,200 employees delivering single-source solutions across asset classes worldwide.
In short, Luxembourg’s scale, credibility, structural flexibility and global outlook make it uniquely attractive among European domiciles.
What do LPs, family offices and wealth managers want on access, reporting and ESG in Luxembourg?
LPs, family offices and private wealth managers are demanding more transparency, flexibility and sustainability integration when allocating capital through Luxembourg structures. Investors expect lower entry thresholds and vehicles such as RAIFs and SICAVs that provide access to private equity, real assets and private credit, often with co-investments or tailored mandates.
Reporting expectations focus on timeliness, granularity and digital delivery, with standardised, tech-enabled updates on performance, fees and risk, underpinned by strong governance. Luxembourg’s regulatory frameworks and fintech adoption enable managers to meet these requirements.
ESG is a priority, with investors seeking credible integration, alignment with international standards and impact’s evidence. To support this demand, Apex launched Holtara, an ESG services company. Holtara now works with more than 400 LPs and GPs and has assessed over 3,000 companies worldwide, helping drive financial, environmental and social impact while creating sustainable value.
