This week, we welcomed industry professionals to our latest Lunch & Learn in Luxembourg, where we explored the trends, challenges and opportunities shaping the future of fund distribution.

The discussion, led by Francis Parisis and Pierre-Yves Jahan, focused on how changing investor expectations, evolving regulation and increasing market concentration are transforming the distribution landscape across Europe and beyond.

The growing strategic importance of distribution

While investment performance remains at the heart of any successful fund strategy, the discussion highlighted how distribution has become an increasingly important driver of growth. As competition intensifies and investors have more choice than ever before, firms are focusing not only on generating returns, but also on how effectively they connect with investors, expand into new markets and build scalable distribution networks. Increasingly, success requires both strong investment outcomes and a well-executed distribution strategy.

The role of scale in a competitive market

We also examined how fund size can influence a manager’s ability to compete on a global stage.

According to European Commission data, average fund sizes remain significantly larger in the US (€2.3bn) compared with the UK (€660m) and the EU (€313m). While assets under management have grown strongly across all regions over the last decade, larger fund structures often provide greater resources to support international distribution and investor engagement.

The concentration of assets is also becoming more apparent. Today, just 3% of AIFs account for 54% of total assets, highlighting how scale continues to shape competitive advantage within the industry.

Regulation continues to reshape distribution models

Regulation remains a key driver of change.

We discussed how AIFMD II and the evolving delegation framework are reshaping the role of the IFM within the distribution ecosystem, influencing relationships with distributors and creating new expectations around investor connectivity and oversight.

As the regulatory landscape evolves, firms are increasingly reviewing whether their operating and distribution models remain fit for purpose.

Retailisation remains a key theme

The continued expansion of private market access to a wider investor base remains one of the industry’s most important trends.

Alongside this growth comes greater demand for transparency around costs, target markets and product suitability. Investors are increasingly seeking clearer information to support decision-making, and firms will need to adapt to these expectations.

Capital raising opportunities continue to evolve

The conversation also explored fundraising opportunities across different regions.

Europe continues to be viewed as an attractive market for raising capital, although firms must navigate local requirements, including the use of licensed intermediaries and MiFID obligations.

At the same time, interest in Latin American distribution opportunities continues to grow. This momentum brings additional opportunities for asset managers, but also increases the need for effective oversight and supervision of investor flows.

Looking ahead

If there was one overarching takeaway from the session, it was that fund distribution is no longer simply a route to market. As managers navigate regulatory change, retailisation and expanding fundraising opportunities, distribution is becoming a core strategic function in its own right.

The discussion highlighted the increasing importance of combining investor access, regulatory oversight and local market expertise to support sustainable growth across jurisdictions. As these trends continue to evolve, we expect distribution strategy to remain firmly on the agenda for asset managers across Europe and beyond.

For firms seeking to access new markets and investor segments, success will increasingly depend on having the right distribution infrastructure, governance framework and regulatory support in place. These are areas where we continue to support clients, helping them navigate the complexities of cross-border distribution while building scalable models that can adapt to changing market and regulatory demands.

Thank you to everyone who joined us in Luxembourg and contributed to a lively and insightful discussion. We look forward to continuing the conversation at future Lunch & Learn sessions.

If you’d like to discuss what these developments mean for your business, please reach out here.