What will truly set Luxembourg apart as a hub for private markets over the next 5-10 years?

Hind El Gaidi – “What really makes the difference is having the entire value chain in one uniform place: legal services, structuring, fund administration, depository, distribution, and regulatory dialogue, all with a density that no other jurisdiction can match. As private markets explore increasingly complex new opportunities, they need a jurisdiction capable of managing this complexity. Over the next decade, Luxembourg is on track to become the infrastructural platform for private assets in Europe.”

Can Luxembourg further strengthen its strategic positioning against international competition? How?

“Yes, by focusing and regularly investing in two areas. Firstly, talents. The ecosystem is experiencing rapid growth, with a constantly evolving demand for new skills and varied expertise. It’s not a human resources problem but a strategic challenge. Secondly, technological infrastructure. Fund administration and compliance are ripe for automation. Luxembourg’s competitive position in five years will depend on its ability to drive this transformation or face its competitive advantage fading. The most competitive players can duplicate regulatory frameworks, but they can’t replicate the ecosystem’s density overnight. However, density without operational modernization may not yield the expected results.”

What structural transformation of the sector do you think is most underestimated today?

“Originally, private markets relied on sophisticated investors, long-term commitments, and little disclosure. On one hand, players are moving towards more open and liquid structures, accessible to a wider audience, which strengthens oversight. On the other hand, they are financing infrastructure, real estate, and private credit on a scale that fully integrates them into the real economy. In general, we see governance standards, reporting requirements, and systemic risk monitoring shaping the sector. Those who proactively address these issues will define the next standard.”

This article was originally written in English, then translated and edited into French for the Paperjam website.