Keeping pace with fast-evolving private market funds

Private market funds have been one of the fastest growing asset classes in investments over recent years. But with growing scale comes growing complexity and demands for greater flexibility. 

With global private market investments now standing at $16.4 trillion,¹ the asset class is attracting increasing interest from institutions and retail investors, notably high-net-worth individuals. New regulations, such as the latest iteration of ELTIF rules in Europe, are also likely to appeal to smaller investors, including retail savers.²

Ian MacWilliams, Managing Director at SEI Luxembourg, says new fund financing methods such as net asset value (NAV) finance, new fund models, and greater requirements for liquidity and data, mean funds will need sophisticated administration services and a supportive and flexible regulatory environment.

Already the largest fund domicile in Europe and the second largest in the world,³ Luxembourg benefits from a central location, a well-established ecosystem of financial services, and a highly developed regulatory environment based on European Union and domestic law.

Luxembourg and its leading investment service providers such as SEI are at the forefront of these developments. They offer an ideal technology and operations environment for innovative fund operators to be part of the new era of private market investment.
 

¹“Assets under management,” Preqin, March 2024.

² “European Long-term Investment Funds - Frequently asked questions,” European Commission, 13 February 2015. 

³ “Worldwide Regulated Open-end Fund Assets and Flows: Trends in the First Quarter of 2024,” European Fund and Asset Management Association (EFAMA), June 25, 2024.