News - 15.05.2025

FundBank Launches to Enhance Luxembourg's Alternative Funds Sector

  • The Financial Centre

Following its authorisation by the European Central Bank as a credit institution in December 2024, FundBank Group officially inaugurated its Luxembourg entity, FundBank Europe S.A., on 15 May 2025. This strategic expansion complements FundBank Group’s existing asset management presence in the Cayman Islands and the United States. FundBank Europe joins the growing number of corporate banking institutions recently established in Luxembourg, highlighting the ongoing appeal of the country’s financial ecosystem.

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FundBank Europe specialises in banking services for alternative investment funds, offering essential financial services including account management, credit facilities, and treasury operations. The bank addresses an identified need within Luxembourg’s alternative funds sector, choosing explicitly not to compete in areas such as depositary banking or fund administration, but rather complementing these existing services.

Luxembourg has witnessed considerable growth in its alternative investment fund sector, driven largely by the implementation of the Alternative Investment Fund Managers Directive (AIFMD) in 2013 and the introduction of the special limited partnership (SCSp), modelled after the Anglo-Saxon limited partnership structure. This regulatory and structural evolution has attracted many international alternative asset managers, consolidating Luxembourg’s position as home to approximately 60% of European alternative fund assets.

FundBank Europe S.A. aims to leverage this growth trajectory, further strengthening Luxembourg’s role as a leading European centre for alternative investments.