Private debt fund survey 2026

What is shaping Luxembourg’s private debt market?

Our 2026 survey points to a market that continues to grow and diversify while responding to regulatory change.

Based on data provided by 12 Luxembourg depositary banks with significant exposure to the private debt fund market, the survey covers more than 1,900 private debt funds and sub-funds and approximately EUR 605 billion in assets under management (AuM).

While many of the trends remain broadly consistent with previous years, growth continues to stand out: participating depositary banks recorded 23.4% AuM-weighted growth between 31 December 2024 and 31 December 2025.

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Private debt fund survey 2026

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Luxembourg private debt market:

Key figures

Fund structures and management

Luxembourg’s structuring flexibility remains a competitive strength. Reserved alternative investment funds (RAIFs) accounted for 70% of surveyed regulated and indirectly supervised vehicles, up six percentage points on the previous survey. Among other alternative investment fund (AIF) debt vehicles surveyed, the special limited partnership (SCSp) remained the leading legal form for 82%. However, Luxembourg’s role extends beyond fund domiciliation. 74% of the AIFMs of the surveyed AIF debt vehicles are located in Luxembourg, with half operating through an in-house AIFM model, highlighting the depth of the local management and servicing ecosystem.

Investment strategies

Direct lending remains the largest strategy, at 45% of the population surveyed, although its share has moderated since the previous survey. It is followed by mezzanine debt at 16% and asset-based lending at 12%, indicating a gradual broadening of the strategy mix beyond traditional direct lending.

The remaining strategies span distressed debt, fund-of-funds, venture debt, special situations and bridge financing, reflecting the breadth of financing opportunities available to managers.

Investor base

Institutional investors accounted for 79% of those represented in the survey, while 73% of investors originated in the European Union or elsewhere in Europe. This growth is taking place against a backdrop of increasing activity in European private credit, reinforcing Luxembourg’s role as a European structuring and servicing hub for the asset class.

Go beyond the headline numbers and explore how Luxembourg’s private debt market is evolving.

The 2026 survey looks at:

Continued growth in assets under management
Fund structures and strategies shaping the market
Investor profiles, investment targets and return expectations
The growing role of loan-originating funds under AIFMD II
Emerging priorities around liquidity, risk management, valuation and portfolio oversight

Download the full survey to explore the data and insights shaping the next phase of Luxembourg’s private debt market.