Luxembourg fund centre guide

Luxembourg

Second-largest fund domicile. Financial services account for a quarter of the economy and the workforce commutes across three borders each day.

Its position rests on passporting rather than tax neutrality. A fund authorised here can be marketed across the single market, which is what draws managers who want European investors, and it is the reason the island domiciles cannot compete for the same business.

Regulators

Commission de Surveillance du Secteur Financier

CSSF·National regulator · Luxembourg·Luxembourg City

Supervisory authority for the Luxembourg financial sector, with its remit set by the organic law of 23 December 1998. Prudential supervision covers credit institutions, professionals of the financial sector, management companies, authorised alternative investment fund managers, undertakings for collective investment, pension funds, SICARs, securitisation undertakings, regulated markets and their operators, payment and electronic money institutions, and crypto-asset service providers. Insurance sits with the Commissariat aux Assurances rather than here.

cssf.lu

Numbers

August 2026

Total net assets

EUR 6,790.699bn

August 2026

Undertakings for collective investment

2,961

August 2026

CSSF, covering Luxembourg · monthly · source

Fund structures

Last verified 28 August 2026

Reserved alternative investment fund

The most used alternative route in the grand duchy, and the one the regulator does not authorise. A RAIF launches once its documents are in place and an authorised external manager is appointed, with supervision reaching it through that manager rather than directly. The offering document must say on its front page that the fund is not supervised here.

Private equityPrivate creditReal assetsHedge

Law of 23 July 2016

Specialised investment fund

Lightly regulated vehicle restricted to well-informed investors, used across hedge, private equity and real estate strategies.

HedgePrivate equityReal estate

CSSF overview

SICAR

Investment company in risk capital, built for private equity and venture holdings rather than diversified portfolios.

Private equityVenture capital

CSSF overview

Part II UCI

Undertakings for collective investment under Part II of the 2010 Law, meaning those outside the UCITS rules. Authorised and supervised directly, and the route for alternative strategies sold to a wider investor base than the specialised fund allows.

HedgePrivate credit

CSSF overview