Capital Raising - Luxembourg

Luxembourg

The country in Luxembourg is projected to reach a Total Capital Raised in the Capital Raising market market of US$65.0m in 2024.
Traditional Capital Raising is expected to dominate the market with a projected market volume of US$53.5m in 2024.
In global comparison, the United States is set to generate the most Capital Raised (US$331,800.0m in 2024).
Luxembourg's capital raising market is thriving due to its favorable regulatory environment attracting global investors seeking financial services opportunities.

Key regions: United States, China, India, Israel, Europe

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Analyst Opinion

Luxembourg, a small European country known for its strong financial sector, has been experiencing significant developments in its Capital Raising market.

Customer preferences: Investors in Luxembourg have shown a growing preference for alternative investment vehicles such as private equity, real estate funds, and venture capital. These types of investments offer higher potential returns and diversification opportunities compared to traditional asset classes. Additionally, investors are increasingly seeking sustainable and socially responsible investments, aligning with the global trend towards ESG (Environmental, Social, and Governance) investing.

Trends in the market: One of the key trends in the Capital Raising market in Luxembourg is the rise of private debt funds. These funds provide an alternative source of financing for companies, particularly small and medium-sized enterprises (SMEs), which may face challenges in accessing traditional bank loans. Private debt funds offer flexible financing solutions, tailored to the specific needs of the borrower, and can provide a higher risk-adjusted return for investors. Another trend is the growing interest in Luxembourg as a hub for green finance. The country has positioned itself as a leader in sustainable finance, attracting investors who are seeking opportunities in renewable energy, climate change mitigation, and other environmentally friendly sectors. Luxembourg's expertise in fund structuring and its favorable regulatory environment have made it an attractive destination for green investment funds.

Local special circumstances: Luxembourg's status as a leading international financial center, with a stable political and legal framework, has contributed to the development of its Capital Raising market. The country's favorable tax regime, including its extensive network of double tax treaties, has attracted both domestic and international investors. Furthermore, Luxembourg's membership in the European Union provides access to a large market and regulatory harmonization, facilitating cross-border capital flows.

Underlying macroeconomic factors: The Capital Raising market in Luxembourg has been influenced by several macroeconomic factors. The low interest rate environment, both in Luxembourg and globally, has driven investors towards higher-yielding investment opportunities, including those offered by private equity and real estate funds. Additionally, the country's strong economic growth and stable financial system have instilled confidence in investors, encouraging them to allocate capital to Luxembourg-based funds. In conclusion, the Capital Raising market in Luxembourg is experiencing significant developments driven by customer preferences for alternative investments, the rise of private debt funds, and the country's position as a hub for sustainable finance. Luxembourg's favorable tax regime, stable political and legal framework, and strong economic growth have further contributed to the growth of its Capital Raising market.

Methodology

Data coverage:

Data encompasses B2B and B2C enterprises. Figures are based on the amount of capital raised, the average of deal size and the number of deals.

Modeling approach / Market size:

Market sizes are determined through a combined top-down and bottom-up approach, building on a specific rationale for each market segment. As a basis for evaluating markets, we use data from OECD, annual financial reports of key players, industry reports, third-party reports, publicly available databases, and survey results from primary research (e.g., the Statista Global Consumer Survey). In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, CPI, number of small and medium-sized enterprises (SME), new businesses registered (number) . This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the S-curve function and exponential trend smoothing are well suited for forecasting digital products and services due to the non-linear growth of technology adoption.

Additional notes:

The market is updated twice a year in case market dynamics change. The impact of the COVID-19 pandemic and the Russia-Ukraine war is considered at a country-specific level.