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Laxman Pai, Opalesque Asia:

The Luxembourg alternatives scene offers an increasing range of attractive structuring options, says the Association of the Luxembourg Fund Industry (ALFI).

Over 265 alternative investment funds managers (AIFMs) have been authorized by Luxembourg's regulator, the CSSF. The number of funds domiciled in Luxembourg now approaches a total of 15,000 - making the Grand Duchy the largest fund hub east of the Atlantic.

Besides, net AUM of alternative investment funds (AIFs) domiciled in Luxembourg has increased by more than one-fifth in the past three years, and hit a record €4.5tn in August. These products are becoming more popular year on year.

According to Preqin, the average size of a private equity fund domiciled in Luxembourg has increased by 50% since 2018, with the number of €1bn+ private equity funds doubling.

Private debt funds' assets under management (AUM) have grown by 40% in the past two years and real estate investment funds are enjoying increased interest from non-EU countries, in particular from the US.

With negative-yielding debt passing the $17tn mark, investors are seeking increasingly more sophisticated alternatives in the hunt for better returns and greater diversification.

From a global perspective, the next few years should represent an era of significant continued growth for alternative investment funds, having witnessed global AUM tripling to near $9tn in the 10 years to 2018.

Furthermore, a rec......................

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