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Luxembourg has adopted a modernised, two-track carried interest tax regime effective 1 January 2026, offering competitive and clear tax treatment for performance-related compensation applicable to a broader set of beneficiaries, reinforcing Luxembourg’s appeal for private equity and alternative fund professionals.
Luxembourg has firmly established itself as a leading hub for alternative investments, private equity, and venture capital, attracting top-tier professionals from across Europe and beyond. Its political and regulatory stability, combined with a diverse financial ecosystem, creates a strong foundation for career development and operational growth. Additionally, initiatives that support relocation, family integration, and competitive incentives make Luxembourg an increasingly attractive destination for skilled international talent. In this interview, we explore the factors that drive Luxembourg’s appeal for professionals and investors, and how the ecosystem supports long-term career growth.
On 27 April 2026, ALFI, LPEA and LuxCMA submitted their response to the European Commission consultation on Private Equity exits, highlighting opportunities to enhance the efficiency and liquidity of private markets in Europe.
The Associations emphasised the intrinsic features of private markets. They highlighted that strengthening exit environments should be built on measures that complement private market dynamics, support smoother exits and capital formation, and preserve the governance frameworks, long-term orientation that underpin private markets’ contribution to European growth.
Click on the following link to read the response to the consultation.
“Private Equity ELTIFs: Why Luxembourg?” is a joint publication by the Luxembourg Private Equity & Venture Capital Association (LPEA) and the Association of the Luxembourg Fund Industry (ALFI).
Developed through a dedicated joint working group, this brochure provides a comprehensive overview of Private Equity ELTIFs and explores why Luxembourg continues to position itself as a leading domicile in this fast-evolving segment.
Catalpa Ventures is the first Luxembourg‑based Venture Capital firm dedicated to investing in early‑stage HealthTech startups in Europe. Founded by a team of professionals with backgrounds in medicine, venture capital, and entrepreneurship, the firm recently celebrated its first closing with over €10 million and is on track to reach its total fund target of €30 million by 2027. Catalpa is driven by a mission to improve the health of 100 million people by addressing key challenges facing healthcare systems: an ageing society, a shortage of skilled labor, and rapidly rising costs.
For most of its history, the Private Equity secondary market was viewed as a niche, reactive segment of the broader alternatives ecosystem. It existed primarily to solve problems: distressed sellers, regulatory constraints, or forced portfolio rebalancing. Two decades later, that perception is obsolete. Today, the secondary market for LP interests has become a structural component of private markets, providing liquidity, price discovery, and portfolio management flexibility at scale.
Private credit has become a key asset class in Europe since the Global Financial Crisis, particularly in the upper middle market where large, well-capitalized companies offer stable lending opportunities. As borrowers increasingly shift between syndicated loans and direct lending, investors are best positioned by combining both approaches—capturing the yield premium of direct lending alongside the liquidity and deployment advantages of syndicated markets.
Private markets have become an essential component of the modern global investment landscape, offering investors an opportunity for diversification and attractive returns.
At the same time, the range of strategies within the space has expanded significantly. Investors today can diversify their portfolios across a wide range of asset classes, such as Private Equity, Private Credit, Infrastructure, Commodities, Real Estate and Venture Capital – each of which is further segmented into distinct sub-strategies.
On 16 March 2026, the LPEA submitted its feedback to the European Commission’s Market Integration and Supervision Package. The Association emphasises the importance of a well-functioning EU Single Market that enables efficient cross-border fundraising, regulatory predictability, and flexible capital deployment for PE and VC managers operating across jurisdictions.
On 12 March 2026, ALFI and LPEA submitted their feedback to the European Commission consultations on the EU venture and growth funds reform. With around 700 sub-threshold alternative investment fund managers (AIFMs) and 30 EuVECA funds/17 EuVECA managers, Luxembourg is a popular choice of domicile for small and mid-sized AIFMs in the EU.
Luxembourg’s alternative investment fund (AIF) ecosystem stands as a beacon of innovation, regulatory excellence, and operational sophistication in Europe. At the heart of this success lies a network of associations and institutions working to uphold the Grand Duchy’s reputation as a global hub for private capital. Among these, the Luxembourg Alternative Administrators Association (L3A) and the Luxembourg Private Equity & Venture Capital Association (LPEA) play pivotal roles. Their collaboration is not only timely but essential to ensuring the continued resilience, adaptability, and competitiveness of the Luxembourg AIF landscape.
This document introduces a standardized Due Diligence Questionnaire (“DDQ”) template developed by the LPEA Fund Administration Committee.
The initiative responds to the growing number of DDQ requests received by Fund Administrators and the resulting challenges caused by inconsistent formats, repetitive questions, and requests for excessive information.
The first template focuses specifically on DDQs performed by the Depositary function in relation to the Fund Administration of administered Alternative Investment Funds (AIFs). The proposed approach reflects both operational needs and practical market expectations.
Insight/Out #37 features a cover story with Giacomo Barchetta, CFO at Neuberger Berman, exploring private markets growth, semi-liquid innovation, and the discipline behind building robust
The inaugural edition of Private Market Insights, a new insight series developed by Clearstream exploring the structural evolution of private markets through data, infrastructure, and market practice.
The world of fund valuation has entered a decisive new phase. Once dominated by straightforward equity and bond portfolios, today’s investment universe has grown exponentially in diversity and complexity. Private Debt, Infrastructure, Renewable Energy, Private Equity, and structured instruments have moved from the periphery to the core of institutional portfolios.
Artificial intelligence is transforming the audit profession in Luxembourg and beyond. Discover how AI, regulation, and new skills are reshaping auditors’ roles, creating hybrid professionals at the intersection of finance and technology.
This white paper, developed jointly by the L3A Operations Committee and the LPEA Central Administration Committee, provides practical, market‑aligned guidance on implementing the outsourcing requirements set out in CSSF Circular 22/806 (as amended by Circular 25/883). It is designed as a hands‑on reference for fund and corporate administrators, compliance teams, and operational leaders navigating the full lifecycle of outsourcing arrangements in Luxembourg.
The latest LPEA Market Trends Survey reveals how liquidity constraints, investor diversification, and evolving exit strategies are reshaping private equity. Based on responses from 116 industry participants, the survey highlights why Luxembourg remains a leading domicile and what trends will define the future of private markets.
Preferred equity has become a key financing tool in today’s private capital landscape, bridging the gap between traditional debt and common equity. In this article, Matthieu De Donder and David Micheli explore its structure, applications, and growing role in private equity, venture capital, and special situations.
The recently adopted regime (the “New Regime”), applies to carried interest acquired under a contract (“Contractual Carry”) or to carried interest strictly linked to, or represented by, a direct or indirect investment in the underlying fund, which is held for more than six months (“Participation Carry”).
In both cases, carried interest compensates the fund manager with a share of the fund’s overperformance. This aligns the manager’s interests with those of the investors. In other words, the manager cannot receive ordinary bonuses through this method.
Clearstream is proud to announce its membership of the Luxembourg Private Equity & Venture Capital Association (LPEA), reinforcing its commitment to advancing the private equity and venture capital industry at both national and international levels.
If you want to understand how Accelex began, forget the usual founder–VC mythology of pitch decks and boardrooms. Our story starts with a pizza. More precisely, a pizza at Ambiente in Strassen, just across from the CSSF, where Franck spent most of the meal asking questions… and Jérôme spent most of it not eating. Not because the pizza wasn’t good, but because Franck’s curiosity left no room for chewing. It was the first sign of a habit that would define the next five years: relentless inquiry on one side, quiet observation on the other, and a shared sense that something important was forming — even if none of us yet knew the full shape of it.
A new Luxembourg bill (No. 8669) proposes allowing founders of SARLs to defer payment of the minimum share capital for up to 12 months after incorporation. The reform aims to simplify and accelerate company formation, particularly for investment funds and alternative asset transactions, reinforcing Luxembourg’s competitiveness as a leading structuring jurisdiction.
Sustainable finance has evolved from a regulatory obligation into a strategic driver of long-term value. In this article, Nicoletta Centofanti explores why ESG integration is now central to competitiveness, risk management and value creation—highlighting Luxembourg’s role as a leading sustainable finance hub and the critical contribution of private equity and venture capital to the transition.
