Luxembourg: Finance and Banking

Luxembourg has enhanced its existing limited partnership regime, adding the special limited partnership to its range of investment vehicles designed for the alternative investment industry...

The text to implement the revised Solvency II Directive (the Implementation Act) was published on 9 January 2026 for public consultation together with the explanatory memorandum.

The Law of 15 June 2004 ("SICAR Law") introduced into Luxembourg law the investment company in risk capital (société d'investissement en capital à risque or "SICAR(s)") which was conceived as a customised...

The Luxembourg law of March 3, 2026 transposed the AIFMD II Directive into national law, introducing significant changes to the regulatory framework governing alternative investment funds. This article examines the practical implications for financing transactions involving Luxembourg AIFs, analyzing how the new rules on loan origination, leverage caps, concentration limits, and enhanced disclosure requirements affect both lenders and borrowers in structured finance arrangements.

As EU fund sponsors (EUFS) grow, they often recognise that establishing a fund in Luxembourg, rather than a fund in their home jurisdiction, increases their chances of attracting capital from across the EU.

Evergreen private credit funds come in a wide variety of formats, but they all have a perpetual life and operate through ongoing fundraising and continuous investment activity

The law of 15 July 2024 on transfer of non-performing loans (the "Law") was published in the Official Journal of the Grand-Duchy of Luxembourg. It aims at implementing Directive (EU)...

On 19 March 2024, the Instant Credit Transfers in Euro Regulation (Regulation (EU) 2024/886 - the Regulation) was published in the European Union (EU) Official Journal.

Following additional inter-institutional negotiations aimed at fine-tuning the text of the provisional political agreement reached with the EU Parliament earlier in July 2023...

Two years on from the entry into force of Directive (EU) 2024/927, commonly referred to as AIFMD II, the 16 April 2026 transposition deadline has passed, and the state of play across the EU is best described as uneven, with compliance posture increasingly dependent on where an AIFM is authorised. However, Luxembourg, which hosts the largest shares of EU AIFs within the Union, transposed the Directive without material gold-plating.

Private equity funds increasingly face investor demand for EUR-denominated commitments, creating complex currency risk management challenges. This analysis explores three structural approaches to accommodate EUR investors while balancing foreign exchange exposure, operational costs, and fund firepower considerations.

Semi-liquid alternative investment funds face inherent tensions between illiquid assets and investor liquidity demands, requiring sophisticated redemption management tools. Under AIFMD II, EU-authorized private fund managers must implement pre-determined liquidity management tools, but not all redemption restrictions qualify equally.