PwC Luxembourg publishes 2023 Observatory for ManCos

PwC Luxembourg is delighted to present the 2023 Observatory for Management Companies. Through this publication, PwC Luxembourg conducts a yearly in-depth analysis of the Management Companies' (ManCos) landscape, in order to provide a complete view of where the industry is heading.

May 24, 2023

Press Release, Luxembourg, 24 May 2023

This year, we observe a net decrease of 4 ManCos in comparison to last year. This corresponds with last year’s trend, mainly driven by the decrease of UCITS Licences, and is explained by market consolidation, pressure on cost and regulatory weight. Nevertheless, the Managed Companies industry remains very dynamic, with 11 new ManCos setup since 2022. The large majority of these new entrants are Alternative Investment Fund Managers (AIFM).

The Assets Under Management (AUM) on regulated products have significantly decreased. In the context of the war between Ukraine and Russia, leading to an increase of interest rates, inflation and overall decrease of the stock market, we identified that 11 % of the decrease of these AuM relates to the evolution of the stock market and only 3% to net sales, demonstrating the strong resilience of the fund industry. At the same time, AIFs have shown a significant increase (+25% in total). This increase confirms the growing leadership of Luxembourg in the Real Assets business consistent with the the increase of the number of AIFM in Luxembourg.

It has to be noted that despite the current uncertain environment, ManCos continue to recruit, with an increase of 5% compared to last year, and 40% in 5 years.

Bertrand Jaboulay, Partner, Management Company Leader, PwC Luxembourg says: “The results of the 2023 Observatory for Management Companies confirm the adaptability and resilience of Management companies in a complex economic environment. The continuous growth of the Real Assets products attracting new alternative players confirms the growing leadership of Luxembourg in this sector.”

2023, “ESG-rise” your Assets

54% of the AuM managed by ManCos are either Article 8 or Article 9 as of 31 December 2022. In comparison to last year, ManCos targeted 45% for the end of 2022. Also, the responding ManCos believe that 59% of their AuM will be considered as Sustainable Investment compliant within the next 12 months, 64% within the next 24 months.

A spotlight on Governance

Luxembourg ManCos continue to have a strong Governance framework, with an average number of directors per ManCo between 4 to 5 and an average of 7 Board meetings per year. The Gender Equality rate gap is also decreasing, with +3% more women than last year. 23% ManCos have a Conducting Officer in charge of Tax matters, while 7% intend to create such a function.

Likewise, 19% ManCos have a Conducting Officer in charge of ESG/Sustainable Finance, with 15% intending to create such a function. In this regard, we determined 3 functions on average per Conducting Officer within ManCos.

Pierre-Marie Bochereau, Director, Management Company Coordinator, PwC Luxembourg says: “We have observed that Management Companies are redesigning their operating models with either insourcing some activities or outsourcing some of them. The past two years have set the record straight: pressure on fees, scarcity of talent, and increased regulatory environment urge players to make choices. Outsourcing of non-core functions has been used for several years; but we also started to observe Asset Managers or ManCos increasingly delegating the management of certain asset classes.”

Business and Strategy

57% of ManCos experienced a revenue increase in 2022 mainly driven by investment performance and business opportunities. At the same time, the majority of ManCos experienced a cost increase in the past year, notably related to regulatory and staff costs.

Bertrand Jaboulay, Partner, Management Company Leader, PwC Luxembourg says: “Digitalisation and technology remain on the top of the priority of the Management Companies. Currently most of the management companies continue to leverage on internal solutions to improve their process, nevertheless ESG data and oversight of delegated functions are considered as the top priorities in terms of need of transformation”.


Looking forward

Luxembourg’s strong position as an attractive fund hub is seen as the main reason to set-up or keep a ManCo in Luxembourg, as stated by 90 % of respondents. Luxembourg’s ecosystem, with the proximity with stakeholders & regulators, the political stability, the business environment etc., is the second most important reason to set-up or keep a ManCo in Luxembourg, supported by 79% of respondents.

Main threats to Luxembourg’s current ManCo model are the increase of the cost of business (91%), the regulatory burdens/challenges (84%), and lack of skilled workforce/resource constraints (75%).

On a long term basis, ManCos perceive that the industry will mainly evolve into a consolidation of the market, with 69% of respondents supporting this claim, and that Luxembourg will tend to be a European Hub for ManCos business, supported by 66%.

When it comes to key trends for Luxembourg ManCos, ESG/Sustainable Finance, Alternative Investments and Digital/Technology were named, among others, as having an important potential impact.

Discover the 8th edition of the Management Company Observatory Barometer available on the PwC Luxembourg website.



Notes to editors

About PwC

  1. PwC Luxembourg ( is the largest professional services firm in Luxembourg with over 3,100 people employed from 85 different countries. PwC Luxembourg provides audit, tax and advisory services including management consulting, transaction, financing and regulatory advice. The firm provides advice to a wide variety of clients from local and middle market entrepreneurs to large multinational companies operating from Luxembourg and the Greater Region. The firm helps its clients create the value they are looking for by contributing to the smooth operation of the capital markets and providing advice through an industry-focused approach.
  2. At PwC, our purpose is to build trust in society and solve important problems. We’re a network of firms in 152 countries with over 328,000 people who are committed to delivering quality in assurance, advisory and tax services. Find out more and tell us what matters to you by visiting us at and

Watch video

In the same category