Agefi Luxembourg - mars 2026

Mars 2026 39 AGEFI Luxembourg Emploi / Formations By Julien FRIGHETTO, CEO, Talent Resourcing Luxembourg* O ver the past decade, the Luxembourg asset manage- ment industry has undergone a profound structural transforma- tion. Rising regulatory com- plexity, increasing governance expectations and higher opera- tional costs have gradually pushed the industry toward larger and more structured platforms. As a serial entrepreneur and headhunting specialist who has been providing tailored recruitment ser- vicestofinancialinstitutionsinLuxembourgformore than 11 years, I have had a front-row seat to these changes-particularlythroughtheevolutionofthetal- entmarket acrossAIFMs andManCos. While this evolution is rational, it raises an important question:Whatdothesestructuralshiftsmeanforthe talent market that supports the ManCo ecosystem - andwhowill continue to serve the smaller fundpro- moters and investors that have historically fuelled Luxembourg’sthird-partyManCoandassetmanage- ment dynamism? The rise - and gradual disappearance - of entrepreneurialManCos In the years leading up to Covid, Luxembourg saw the rapid development of third-party Management Companies andAIFMs serving a very specific seg- ment of themarket: - independent fundpromoters - emerging assetmanagers - entrepreneurial investment teams launching their first regulated structures Many of theseManCos shared common character- istics: - relatively small and agile organisations - entrepreneurial cultures - strongproximitywith their clients - flexible governance structures - the ability to accompany promoters from launch to scale Inmanyways, theywere the “artisans of asset man- agement infrastructure” inLuxembourg. This expansion of the ManCo landscape was also clearly reflected in the recruitmentmarket. Thepro- gressive increase in licences and regulatory sub- stance requirements translated into a significant wave of hiring across all functions - beginningwith Conducting Officer roles and gradually extending to more operational positions as AUM and fund ranges expanded. This trend had started well be- fore 2018, although it was further accelerated by later regulatory developments. TodayLuxembourgremainsEurope’slargestinvest- mentfundcentreandthesecondworldwideafterthe United States, with more than €5 trillion in assets undermanagement across over 15,000 funds. The ManCo landscape itself has evolved noticeably. After a decade of expansion that saw the number of platforms rise fromaround 260 in 2014 tomore than 310 by 2018, the market has entered a phase of con- solidationandhasstabilisedslightlybelow300en- tities in recent years. This is happening despite continuedasset growth - a signal that scale is in- creasinglyconcentratedratherthanmultiplying across newplatforms. Regulation and the race for critical size Over the past decade, the regulatory environmenthasintensifiedsignifi- cantly.ManCoshavehadtoabsorb a growing number of require- ments: - AIFMD and UCITS governance frameworks - increasingly demanding AML / KYCobligations - substance requirements - enhanced reporting and risk over- sight -strongerexpectationsfromregulatorsregardinggov- ernance and internal control functions All of this comeswith structurallyhigher fixed costs. As a result, scale has become increasingly impor- tant. Higher regulatory complexity not only in- creases operational costs - it also progressively raises theminimumsize belowwhich aManCo be- comes economically difficult to sustain. This natu- rally pushes the market toward consolidation. Luxembourg has therefore experienced a steady wave of: -mergers - acquisitions - strategic integrations -groupsdecidingtoexitLuxembourgaltogetherand close their ManCo structures, having concluded that themodel had become too costly or no longer strate- gicallyattractiveamongManCosandAIFMs,asplat- forms seek the critical mass required to sustain regulatory andoperational burdens. Interestingly, this consolidation is happening while the industry continues to grow. LuxembourgManCos today overseemore than €5.8 trillion in assets, with third-partyManCos represent- ing roughly one fifth of the assetsmanaged in the ju- risdiction.Buttheconsequencesofthisstructuralshift extendfarbeyondinfrastructure.Theyarenowclearly visible in the talentmarket. What the talentmarket reveals In Luxembourg’s AIFM and ManCo ecosystem, structural shifts in the industry often become visible first through hiring patterns. Observing the market from the vantage point of executive search - through conversations with CEOs, Conducting Officers and governanceleaders-thesechangesarealreadyclearly reflected in the profiles firms are looking for today. Between 2018 and 2020, the market experienced a clear peak in demand for Conducting Officers, drivenbygovernanceexpectationsandsubstancere- quirements (Circular 18/698 being one example of this broader trend). At the time, experiencedCOprofileswereextremely scarce and heavily competed for. Today, the situa- tion has evolved. Asconsolidationreducesthenumberofindependent ManCo platforms, the number of new Conducting Officermandateshasmechanicallydeclined.Therole itselfhasnotlostimportance-butthenumberofavail- able “seats” has naturally contracted. As a result, it is now increasingly common to en- counter very senior ConductingOfficer profileswho are either: - having lost their roles and actively looking for new opportunities - cautiously reassessing long-termstability asituationthatwasfarlesscommonatthepeakofthe market just a fewyears ago. At the same time, this sharp reduction inopportuni- ties has not produced the kind of mechanical salary correction one might normally expect fromweaker demand.Compensationlevels-particularlyinCom- pliance, governance and control functions - have re- mained broadly stable. This reflects a simple reality: the level of responsibility, scrutinyandpersonal risk attached to these roles continues to increase, espe- ciallyforauthorisedmanagersandConductingOffi- cers, and candidates expect remuneration that reflects that exposure. At the same time, larger and more structured plat- forms are reinforcing their governance frameworks, which continues to drive strong demand for experi- encedprofessionals. Profileslinkedtocompliance,governanceandcontrol clearly remain indemand - but theyareno longer the onlyonesthatmatter.Asplatformsgrowandoperat- ingmodelsbecomemorestructured,oneofthehard- est challenges becomes maintaining client proximity and service quality within organisations that are in- creasinglyprocess-driven.Insuchenvironments,true bespoke service can sometimes become difficult - if notillusory.Thisiswhy“serviceexcellence+business understanding”isbecomingadecisivedifferentiator. Firms are increasingly looking for professionals ca- pable of combining: -strongregulatoryjudgementandgovernancerigour -pragmaticstakeholdermanagementandclearcom- munication -agenuineunderstandingofclientsandbusinessdy- namics Inotherwords, themost valuable profiles are those capable of protecting the platformwhile preserving the relationship with fund promoters and asset managers. Anotherstrongandlastingtrendconcernsoperational oversight roles. AsManCos increasingly rely on del- egatedoperatingmodels,demandremainsrobustfor professionals capable of: - supervising outsourced activities - overseeing service providers -ensuringstrongoperationalgovernanceframeworks These oversight-oriented operational profiles - often belowtopexecutivelevelbutessentialtotheresilience of the ManCo model - remain among the most con- sistentlydemandedrolesinLuxembourg’sassetman- agement talentmarket. Theyareexpectednot only to superviseoutsourcedactivitiesbutalsotoreporteffec- tively to headquarters, shareholders, owners or top management, translating operational oversight into clear governance reporting. Whowill continue to serve smaller fundpromoters? Aswehaveseen,ManCosmustreachacriticalsizeto remain sustainable. That institutional scale naturally pushes them toward larger clients - clients who are themselvesused to rigorousprocesses, complexgov- ernance and highly structured operating models. In thatcontext,smallermandatescangraduallybecome less attractive: they are often perceived as less prof- itable,relativelymoredemandingandnotnecessarily worth the regulatory andoperational risk involved. This leads to a simple but important question: who will continue to serve the smaller entrepreneurial promoters that historically contributed to Luxem- bourg’s dynamism? Smaller clients are also increas- ingly perceived as higher-risk clients, and this risk-basedapproachhasprogressivelyspreadacross the operating models of European financial institu- tions, influencingstrategicdecisions andclient selec- tion across the industry. These actors still exist: - emerging assetmanagers - specialised investment boutiques - spin-offs fromlarger institutions - family offices launching regulated structures - first-time fundpromoters Yet many of them require flexibility, proximity and entrepreneurial understanding - characteristics that historicallydefined the smaller third-partyManCos. One possible answer may already be emerging. As isoften the case infinancial ecosystems, nature tends to fill a vacuum. As larger platforms become more institutional and selective in the mandates they ac- cept,anewlayerofmarketparticipantsmaydevelop between entrepreneurial promoters and large ManCo platforms. In practice, this could take the form of experienced industryprofessionals or specialisedadvisorystruc- tures positioning themselves as intermediaries - helping smaller fund promoters structure their pro- jects, navigate regulatory expectations and connect with larger institutional ManCos capable of hosting or supervising the structures. These actors would not necessarily operate as regu- lated ManCos themselves, but rather as structuring advisers or service providers facilitating the relation- ship between demand and the increasingly institu- tionalised infrastructure of the market. If this trend continues, it could represent a new evolution of the Luxembourg ecosystem - where intermediation and advisoryexpertisehelppreserveaccesstothefundin- frastructure for smaller promoters whomight other- wise struggle tofind a natural entrypoint. Conclusion Luxembourg’seconomyhashistoricallybeenbuilton a dense ecosystem of specialised firms and en- trepreneurial platforms. Like in most advanced economies,SMEsrepresentmorethan90%oftheeco- nomic fabric. Ensuring that this entrepreneurial layer continues to exist within theManCo ecosystemmay therefore bemore than an industry question - it may be a strategic consideration for the long-term vitality of the financial centre. Because while consolidation may reduce certain risks, an ecosystem composed onlyofverylargeplatformsmayalsobecomelessdy- namic, less innovative and ultimately less resilient. And in financial ecosystems, as in nature, balance oftenmatters asmuch as scale. * Julien Frighetto is, among others, the CEO of Talent Resourcing, a Luxembourg-based executive search boutique specialised in financial services (asset management, banking, insurance). He advises financial service providers on strategic hires across Compliance & Legal, Risk, Portfoliomanagementandoperations(fromfronttobackoffices),helping firms build teams aligned with regulatory expectations, organisational culture and long-term strategy. The silent reshaping of Luxembourg’s ManCo ecosystem L ’étude de Randstad « La génération Z en entreprise : tournée vers l’avenir, en constante évolution » s’appuie sur une enquête menée auprès de 11.250 talents dans 15 pays et sur l’ana- lyse de plus de 126 mil- lions d’offres d’emploi. Ambitieuse et pleine de poten- tiel, la génération Z peine pour- tant à trouver sa place dans le monde du travail. Elle arrive sur le marché de l’emploi dans un contexte de profondes transfor- mations. Malgré une pénurie de talents qui s’accentue dans de nombreux secteurs, le nombrede postes ouverts aux profils débu- tants diminue progressivement. Les jeunes travailleurs font face à une concurrence accrue, notamment liée au développe- ment de l’intelligence artifi- cielle, qui permet d’automatiser certaines tâches auparavant confiées aux profils juniors. La Gen Z évolue également dans un environnement marqué par une disruption technolo- gique constante et des perspec- tives de carrière parfois incer- taines. Le rapport de Randstad dresse ainsi le portrait d’une génération à la fois déterminée et parfois désorientée. Les jeunes aspirent à des carrières porteuses de sens et se projet- tent sur le long terme, mais beaucoup manquent encore de confiance pour naviguer dans l’univers professionnel. Conséquence directe : la durée moyenne passée dans un poste diminue. Les jeunes actifs chan- gent aujourd’hui d’emploi plus rapidement que les générations précédentes. L’étude suggère que cette mobi- lité traduit surtout une réaction à des attentes déçues et un fort désir de progression. La généra- tion Z fait également face à un paradoxe : alors que les entre- prises recherchent des talents, les opportunités pour faire ses pre- miers pas dans la vie profession- nelle se raréfient. À l’échelle mondiale, le nombre d’offres d’emploi destinées aux profils ayant moins de deux ans d’expérience a chuté de 29 points depuis janvier 2024. L’intelligence artificielle accentue cette tendance, notamment dans les secteurs prisés par les jeunes talents comme la technologie et lafinance. Dans la tech, les postes juniors ont reculé de 35 points, tandis que la finance enregistre une baisse de 24 points des postes destinés aux jeunes tra- vailleurs. À l’inverse, le secteur de la santé fait figured’exception, avec une hausse de 13 % des offres pour les profils débutants. Face à ces opportunités plus limi- tées, de nombreux jeunes travail- leurs se voient contraints de faire des compromis dans leurs choix de carrière et d’accepter des postes qui ne correspondent pas entièrement à leurs aspirations. Pour autant, la génération Z ne se laisse pas décourager et explore de nouvelles façons de travailler. Une partie des jeunes actifs combine par exemple un emploi principal avec une acti- vité secondaire (« side hustle »), afinde gagner enflexibilité oude compléter ses revenus. Malgré certaines inquiétudes liées à l’impact de l’intelligence artificielle sur l’emploi, la géné- ration Z reste globalement opti- miste face au potentiel de cette technologie. Une majorité de jeunes travailleurs utilise déjà l’IA pour résoudre des pro- blèmes au travail ou acquérir de nouvelles compétences. Dans ce contexte, les entreprises ont tout intérêt à mieux com- prendre les attentes de cette génération : proposer des pers- pectives d’évolution claires, investir dans la formation et ins- taurer une culture d’entreprise fondée sur la confiance pour- raient constituer des leviers essentiels pour attirer et fidéliser ces jeunes talents. La Gen Z en entreprise, une génération à la fois déterminée et désorientée ©Freepik