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Fund Domiciles / Luxembourg / Service Providers

What your Luxembourg service providers actually do.

Dozens of firms compete for this business, with very different specialisations, pricing and service quality. Here's what each category genuinely covers — and how Mangis Bay helps you select, appoint and manage them.

Central Administration

Must be located in Luxembourg. Today, most Private Equity administrators offer the full range of services — either directly or via delegation from the management company/AIFM to one or several specialist providers.

How Mangis Bay helps: we benchmark administrators for sector fit, pricing and responsiveness, then manage onboarding and service-level negotiation.

Get an administrator shortlist →

Two provider types

Large international administrators (often bank-affiliated, offering custody + admin together) versus independent local/international PE specialists — some of the latter have since obtained their own depositary and/or AIFM licences.

Depositary & Custody

Regulated vehicles (SIF, SICAR, RAIF) require a Luxembourg depositary. Depositary services comprise three distinct components:

Despite AIFMD II, the depositary should in principle be located in Luxembourg; only in exceptional, conditional circumstances may it sit in a different Member State.

How Mangis Bay helps: we identify depositaries suited to your asset class — including non-banking depositaries where a full banking relationship isn't required.

Discuss depositary options →

Non-banking depositaries

Funds using a non-banking depositary for assets other than financial instruments must open cash accounts with a separate bank — worth planning for early, since it can be the real bottleneck to launch.

Bank Accounts

Luxembourg banks offer cash management, treasury, FX management, bridge financing and escrow account services to Private Equity clients. Any EU (or certain non-EU) bank can technically be used, but there are real reasons to prefer a local institution:

Online banks accepted by the CSSF have emerged as an alternative to traditional local institutions, offering more flexibility for smaller or faster-moving structures.

How Mangis Bay helps: we make warm introductions to Luxembourg banks suited to your investor profile and help pre-empt AML documentation delays.

Get a banking introduction →

Start early

Account opening timelines are frequently the actual critical path to launch — regardless of which vehicle or providers you've chosen.

Auditors

An independent, CSSF-approved Luxembourg auditor (réviseur d'entreprises agréé) is required for the annual accounts of regulated vehicles (SIF, SICAR), and expected in practice for most other structures raising institutional capital.

How Mangis Bay helps: we shortlist auditors with genuine private equity experience — not just generic fund audit capacity — and manage the tender process.

Get an auditor shortlist →

Why it matters

Audit quality and sector experience vary widely — a generalist auditor unfamiliar with capital calls, carried interest or valuation policy can slow year-end close considerably.

AIFM — In-house or Third-Party

Luxembourg gives both EU and non-EU fund managers the flexibility to choose between becoming an authorised AIFM themselves or partnering with an experienced third-party AIFM. Both routes are well developed locally, with a wide range of providers able to meet demanding regulatory requirements.

"Whether you wish to retain full control over fund management or outsource it to a trusted local partner, Luxembourg offers the necessary infrastructure and resources to support your decision."

How Mangis Bay helps: we help shortlist and vet third-party AIFMs against your strategy and cost profile, or advise on the substance required to become authorised yourselves.

Get an AIFM shortlist →

Governance & directors

Independent directors provide local substance, board oversight and a second set of eyes on conflicts, valuation and regulatory compliance — Mangis Bay appoints experienced independent directors to your Luxembourg boards and supports ongoing governance and CSSF liaison.