On Monday 2 June 2025, PwC Luxembourg announced the release of its 2025 Barometer for the previous year's "Observatory for Management Companies".
This is the tenth edition of this flagship publication dedicated to delivering a comprehensive and accurate overview of Luxembourg's management companies (ManCos) market.
This year's barometer offers an overview encompassing undertakings for collective investment in transferable securities (UCITS) ManCos, alternative investment fund managers (AIFMs) and those holding both UCITS and AIFM licences, known as "Super ManCos". This latest iteration involved 72 participants, holding 83% of ManCos' assets under management (AuM) and representing 77% of ManCo employees as of December 2024.
Insights from PwC’s Observatory for Management Companies 2025 Barometer include:
- €5,858 billion in AuM (+12.3% AuM growth);
- thirteen new market entrants;
- 19% of total AuM is now managed by third-party ManCos;
- 90% of survey participants see digitalisation as key to boosting margins;
- 25% of conducting officers are responsible for the tax function.
As reported by PwC, despite global challenges, Luxembourg remains an attractive hub reinforcing its position as the centre of excellence in asset management in Europe; 29% of the regulated European total net assets of UCITS and AIFs are domiciled in the country. Luxembourg's ecosystem sustained its competitiveness and agility with a total AuM exceeding the €5,800 billion mark. Luxembourg ManCos have seen a notable increase (+12.3% in total) in all liquid and private assets, driven by the evolution of the market stock. Alternative investments continued to grow steadily, confirming Luxembourg is the domicile of choice for regulated and unregulated alternative products and for their AIFM, according to PwC.
Moreover, governance in Luxembourg's ManCos continues to evolve. Increasing regulatory requirements have led to a rise in the number of conducting officers and board members, reportedly reflecting the need to demonstrate stronger substance, greater specialisation and clearer segregation of tasks. PwC added that the number of non-executive directors in boards is growing, in response to increasing demand for independent oversight. Once again, this year, tax governance remains a key focus with more conducting officers appointed to assess procedures affecting the evolving tax landscape.
PwC noted that digital transformation is accelerating, with significant investments in digitalisation and artificial intelligence (AI) as ManCos are leveraging technology to improve operational efficiency and manage real-time risk assessment.
This edition of the barometer also revealed the continuous increase of Luxembourg ManCos' branches and related full-time equivalent employees (FTEs) abroad. These branches propose marketing and fund distribution services among other operational functions to support the ManCos' initiatives.
The Barometer also outlined the long-term evolution of the ManCo industry in Luxembourg, as well as key trends including digitalisation, the use of AI and the rise of highly specialised ManCos.
Laurent Butticè, Management Company Leader and Audit Partner at PwC Luxembourg, said: "Facing dual challenges in maintaining competitiveness and adapting to regulatory changes, ManCos' operating models are being reshaped. This strategic shift reflects a trend towards insourcing core functions to optimise the value propositions, while outsourcing operational functions both within the group and through third-party providers to benefit regulatory expertise and operational efficiencies. In the Luxembourg ManCos landscape, third-party Mancos continue offering valuable 'one-stop-shop' solutions, providing a comprehensive support and allowing asset managers to focus on core competencies".
The survey also revealed the top 20 ManCos as of December 2024. The first five from the list are as follows:
1. J P Morgan Asset Management (Europe) Sárl, with €531,193 million in AuM (+21% over one year);
2. DWS Investment SA, with €411,112 million in AuM (+28%);
3. Amundi Luxembourg SA, with €315,232 million in AuM (+21%);
4. UBS Asset Management (Europe) SA, with €228,248 million in AuM (+26%);
5. HSBC Investment Funds, with €199,231 million in AuM (+26%).
Among the top 10 AIFMs cited in the survey are:
1. Universal-Investment-Luxembourg SA, with €131,743 million in AuM (+10%);
2. Carne Global Fund Managers (Luxembourg) SA, with €123,705 million in AuM (+44%);
3. EQT Fund Management Sárl, with €117,389 million in AuM (+13%);
4. Hauck & Aufhäuser Fund Services SA, with €100,168 million in AuM (+5%);
5. Blackstone Europe Fund Management Sárl, with €84,293 million in AuM (+28%).
Further details can be found in PwC's Observatory for Management Companies 2025 Barometer, available at https://www.pwc.lu/en/asset-management/management-company.html
