Luxembourg recorded 10 private equity transactions in Q1 2025, maintaining stable deal flow even as broader European private markets experienced a sharp pullback, according to new data from PitchBook.

While deal value in the Grand Duchy fell to €1.9bn from €5.3bn in Q1 2024, the overall volume of transactions held firm, up slightly from nine a year ago. Luxembourg accounted for 1.99% of total European PE deal value and 0.7% of all deals completed across the continent during the quarter.

Across Europe, deal value declined by 24.6% quarter-on-quarter, while deal count dropped by 17.7%. The slowdown was largely attributed to investor caution amid escalating geopolitical tensions, new US-EU trade tariffs, and political instability in major markets like France and Germany. Learn more about deal-making in the Benelux area by joining the Benelux Private Equity Conference in Amsterdam. 

“Geopolitical tensions with the US accompanied by political instability in France and Germany have taken centre stage in Q1, causing hesitation among investors,” said Nicolas Moura, senior research analyst for EMEA private capital at PitchBook.

Despite macro headwinds, Luxembourg’s deal count resilience stands out. The Nordic region also showed year-on-year growth, benefiting from independent central banking policies. In contrast, the UK and Ireland posted their lowest quarterly deal count since the pandemic began.

Exit activity mirrored the broader market trend, with exit value down 18% quarter-on-quarter and exit count falling by 25.2%. PitchBook noted a growing backlog of companies delaying exits and remaining private for longer.

While deal values may have declined, Luxembourg’s consistent activity demonstrates the jurisdiction’s ongoing appeal as a private equity hub, particularly in a volatile geopolitical and economic climate.