Private Assets - Private Debt Funds in Luxembourg: Legal, Regulatory and Structuring Essentials

Private debt has become a key component of the private assets industry, offering alternative financing solutions through non-bank lending structures. Luxembourg has established itself as a leading jurisdiction for private debt funds, supported by a flexible legal and regulatory framework adapted to a wide range of credit strategies.

This training offers a practical introduction to the Luxembourg private debt fund ecosystem, including market context, structuring options and key regulatory considerations. Participants will gain hands-on insights into private debt fund strategies, the use of SPVs and securitisation vehicles, the relevant Luxembourg and European regulations, as well as the roles of the main service providers involved in the setup and day-to-day operation of private debt funds.

• Introduction to Private Debt Funds in Luxembourg
  • Introduction and training objectives (giving an overview of the legal and structuring landscape in Luxembourg with a specific focus on private debt investments via fund structures)
  • Evolution of private debt as an asset class in Europe
  • Historical background – why private debt has long been popular in the US and remains a relatively “new” asset class in Europe
• Luxembourg as a Hub for Private Debt Funds
  • Why Luxembourg is a preferred jurisdiction for credit funds
  • Overview of the Luxembourg “toolbox” for debt strategies ( including a short excursus on securitisation vehicles )
  • Use of SPVs
• Navigating the Legal Landscape / How to structure a Luxembourg Private Debt Fund
  • Investment routes for a fund into private debt
    • Loan origination
    • Loan acquisition
    • Loan syndication
    • Seasoning & sell-down strategy
    • Key legal and regulatory rules a Luxembourg fund must observe
      • Luxembourg fund laws
      • AIFMD II (including loan origination and liquidity management tools)
      • ELTIF
      • Loan origination passport / Banking monopoly
      • 1993 Law and other jurisdictions
      • Fronting structures
• Set-up and Service Provider
  • Structuring highlights for private debt funds
  • Overview of core fund service providers and their roles