Luxembourg remains the dominant jurisdiction for the registration of European long-term investment funds, more commonly known as Eltifs, in the first half of 2025, according to an analysis by Hosna Houbani, senior director at Scope Fund Analysis. Of the 34 Eltifs authorised during the period, 25 received approval from Luxembourg’s Financial Sector Supervisory Commission (CSSF). Of those, 22 were marketed by fund providers locally, and 18 were cleared for distribution across the EU, Houbani told Paperjam.

Houbani, a lead analyst within the alternative investments division at Scope Fund Analysis, noted that Luxembourg’s position remains supported by a combination of regulatory familiarity and legal infrastructure. “Luxembourg continues to play a central role in the Eltif landscape, supported by a well-established legal framework and a broad range of fund vehicles familiar to asset managers, who already use them to serve institutional and professional investors,” she said.

UCI Part II remains the preferred legal structure

Houbani highlighted that 15 of the 22 Eltifs authorised and marketed by the CSSF were structured under the UCI Part II framework. This regulatory model continued to be favoured by fund sponsors for its compatibility with both institutional mandates and retail investor participation. Scope’s analysis indicated that the UCI Part II regime remained integral to Luxembourg’s enduring appeal for asset managers looking to structure and distribute long-term investment products across the EU.

2024 trends reinforce 2025 trajectory

The findings for 2025 followed similar trends observed in the previous year. In 2024, 55 Eltifs were launched, 37 of which received approval from the CSSF. At least 26 of these were authorised for cross-border, pan-European distribution. The data pointed to an ongoing preference among asset managers to establish Eltifs within Luxembourg’s legal environment, which offers flexible fund structures, regulatory clarity and investor familiarity.

According to Houbani, Luxembourg’s legal ecosystem provides a distinct advantage for Eltif sponsors seeking seamless cross-border distribution, particularly as other jurisdictions lack comparable fund vehicle frameworks. “Eltif launches are expected to remain concentrated in Luxembourg, where investment vehicles are well-recognised, familiar and widely accepted by asset managers and investors,” she emphasised.

Limited alternatives outside Luxembourg

Scope concluded that Luxembourg’s legal framework, combined with the operational experience of the CSSF in Eltif oversight, continued to make it the jurisdiction of choice for both professional and retail-focused vehicles. Other EU markets, Houbani noted, face structural and regulatory limitations that complicate the registration process and impede efficient distribution across member states.

As the Eltif market matures under the updated Eltif 2.0 regulation, the findings suggest Luxembourg’s status as the primary hub is unlikely to change. Asset managers seeking to meet investor demand for long-term, diversified private market exposure continue to favour the jurisdiction’s blend of legal flexibility, product familiarity and cross-border readiness.