Over the last 10 years Luxembourg has established itself as the leading jurisdiction for PE fund domicile, with much of that growth coming at the U.K.’s expense after its attractiveness waned following Brexit. Luxembourg achieved that status by proactively seeking to optimize its appeal as a fund domicile across several factors, particularly relative to other prominent European jurisdictions. The U.K. still has several advantages, which, combined with the expected inflow of U.K. pension fund money into private capital, should ensure strong continued demand for domestic fund products. However, to significantly turn the dial, the U.K. government would need to adopt substantial reforms. In a guest article, Travers Smith attorneys Michael O’Brien Kelly, Tom Margesson and Ian Zeider examine the key factors that sponsors consider when deciding where to establish their funds; analyze how the main European fund jurisdictions of Luxembourg, the U.K., the Channel Islands and Ireland stack up in relation to those factors; and evaluate how the U.K. could improve its position. See “Gauging European Investors’ Appetite for U.S. Funds and Considerations in Marketing to Them” (Nov. 14, 2024); and “IFI Global Survey Identifies Trends in Offshore Domiciliation and Fund Structuring Among U.S. Managers” (Nov. 2, 2021).