LUXEMBOURG Trends and Developments Contributed by: Marcus Peter and Marie-Thérèse Wich, GSK Stockmann SA
is a member of the Ordre des Experts-Comptable in Luxembourg. In July 2025, SES SA, the Luxembourg-based satel - lite operator, completed its USD3.1 billion acquisition of Intelsat, a major US satellite communications pro - vider. Following prior UK clearance, the transaction is expected to close in the second half of 2025, creating one of the world’s largest satellite service companies combining geostationary and medium-Earth orbit technologies. Influence of global conflicts The war in Ukraine, other global conflicts and the resulting inflation have influenced the international economic situation, although the private equity market has remained quite stable so far. The exposure of Lux - embourg private equity asset managers to Russian assets has been very limited for a number of years. Reporting requirements Investor reporting can be considered an upcoming trend that is increasingly important in Luxembourg. As relevant data is requested by investors, transpar - ency and daily reporting to investors becomes more important and needs to be considered by private equity market players in Luxembourg. Importance of sustainability Reporting and investment need to take greater account of ESG and sustainability criteria. Since Reg - ulation (EU) 2019/2088 of the European Parliament and of the Council of 27 November 2019 on sustain - ability‐related disclosures in the financial services sector (SFDR) became effective on 11 March 2021, investment fund managers and private equity firms have to consider ESG criteria when making invest - ments. If they do not intend to consider such criteria, they need to explain their reasons and all related risks. Since 1 January 2023, the level 2 technical and formal guidelines (the Regulatory Technical Standards; RTS) have applied, providing for additional disclosure and reporting obligations for financial market participants. In June 2024, after reviewing the existing SFDR provi - sions, the European Supervisory Authorities published a joint opinion with proposals for changes to the SFDR including, amongst others, a new financial product
classification system. It is expected that a first draft of the amended SFDR will be published in 2025, and that existing provisions will be adapted to make sustain - ability investments more comprehensive for investors and to support further the green transition, etc. In addition, the EU’s Corporate Sustainability Report - ing Directive (CSRD) and European Sustainability Reporting Standards (ESRS), which contain a frame - work for large companies in the EU to report their sus - tainability data, entered into force in January 2023. Such reporting obligations can also concern large private equity firms. In February 2025, the “Omnibus” package was published in order to amend the CSRD, and to simplify existing rules, render processes less burdensome and boost the competitiveness of the European market. Investors must consider ESG criteria on an ongoing basis. Companies have become more accountable to shareholders and customers, and shareholders pay significantly more attention to how their money is invested and whether their investment has any posi - tive or negative impact on the environment. For exam - ple, institutional investors like pension funds focus on funds that promote or target sustainable investments (Articles 8 and 9 under the SFDR). This is a challenge for private equity firms as there are more things to take into account when choosing an appropriate invest - ment. Such firms need to review the impact and value of investments. Nevertheless, private equity funds represent the AIF asset class with the largest share of AuM focusing on ESG or sustainable strategies, based on the latest studies. Furthermore, banks are more frequently asking about ESG when providing a loan facility. The attractiveness of investee companies could increasingly depend on the implementation of reliable and effective ESG poli - cies and strategies by the target companies. The SFDR, CSRD and other EU regulations that are expected to follow will become more and more impor - tant, and will influence private equity investments and investment funds in Luxembourg and elsewhere in the future.
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