LUXEMBOURG Law and Practice Contributed by: Marcus Peter and Kate Yu Rao, GSK Stockmann SA
In response, parties are re-evaluating deal structures, with purchasers increasingly opting to mitigate liquid - ity concerns by reducing the amount of cash consid - erations. Earn-out provisions, such as tying a portion of the purchase price to the performance of the target company after closing, have proven to be an effec - tive tool for purchasers to manage risk and mitigate market volatility. At the same time, AI is also transforming deal-making. Companies are starting to leverage AI-driven analyt - ics to streamline operations and optimise investment strategies, making AI adoption an important element of M&A activity in 2025 and expected to remain so in 2026 and beyond. See also 3.1 Significant Court Decisions or Legal Developments . 1.3 Key Industries Key sectors in the M&A market in Luxembourg, apart from the fund industry, include cargo transportation and logistics, energy, automotive and engineering, as well as technology, media and telecommunications. Consistent with recent years, the technology sector has been a significant driver of market activity, both nationally and globally, and is expected to maintain its prominence in 2026 given the ongoing pursuit of digital transformation and the rise of AI. The investment funds industry continues to play a major role in the Luxembourg financial and legal mar - ket. As of 31 December 2025, the total net assets of Luxembourg supervised undertakings for collective investments (UCIs) amounted to EUR6,199.370 bil - lion. UCI net assets increased in 2025, with the overall volume rising by 6.52% over the past 12 months. It thus appears evident that although market challenges persist, equity markets showed signs of recovery in 2025, fuelled by optimism surrounding rate cuts and decreasing inflation. Several significant transactions were announced in 2025 and early 2026, in both the financial sector and non-financial sector. In February 2025, Blackfin Capital Partners, a private equity firm, completed its acquisition of Lemanik Asset
Management, a Luxembourg-based third-party man - agement company. The transaction, which received approval from the CSSF, positions Blackfin to support Lemanik Asset Management as an independent pro - vider while pursuing further acquisitions of independ - ent management companies and specialised divisions of asset managers and banks. In May 2025, Apex Group, the global fund and asset servicing provider, announced it had acquired a major - ity stake in Tokeny, a Luxembourg-based fintech spe - cialising in tokenisation solutions, which provides an institutional-grade platform for the compliant tokeni - sation of financial assets on blockchain networks. In September 2025, FE fundinfo, a UK-headquartered financial data and technology provider, announced the acquisition of AlphaOmega, a Luxembourg-based reg - ulatory reporting specialist. The acquisition expands FE fundinfo’s presence in Luxembourg, making Lux - embourg the second-largest global operation centre after the UK, reinforcing the Grand Duchy’s position as Europe’s leading investment fund centre. The deal follows FE fundinfo’s 2022 acquisition of Fundsquare, further consolidating its presence in the Luxembourg fund services market. In September 2025, Keyrock, the Brussels-based crypto liquidity provider, announced the acquisition of Turing Capital, a Luxembourg-registered alterna - tive investment fund manager, to launch its asset and wealth management division. The new division will focus on delivering long-term digital asset strategies to institutional and private investors. Furthermore, in February 2026, Chesnara, the UK-list - ed life and pensions consolidator, agreed to acquire Scottish Widows Europe, a Luxembourg-based closed life insurer, from Lloyds Banking Group for EUR110 million. The transaction adds EUR1.7 billion in assets under administration and approximately 46,000 policies with holders in Germany, Austria and Italy. Chesnara intends to use the Luxembourg platform as a base for further European consolidation, citing the Grand Duchy’s position as a major cross-border insur - ance hub. Completion is expected towards the end of 2026, subject to regulatory approvals.
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