Alan Dundon : Adapting to promote the growth of alternative investments
L3A
L3A's mission is to promote the interests of its alternative service provider members and to actively contribute to the continued development of Luxembourg as an investment and operational centre of choice for global alternative investment managers.
What are the concerns of L3A members at the moment?
Our members’ concerns continue to be closely aligned with those of their asset management clients. While the landscape remains broad and evolving, three priorities stand out in the current context. Firstly, there is a strong focus on how best to leverage artificial intelligence, particularly within operations. Members are actively exploring how AI can drive efficiency, scalability and improved service delivery, while at the same time carefully managing the associated risks, including governance, data quality, and regulatory considerations. Secondly, the need to closely monitor and engage with ongoing legal and tax developments remains critical. Ensuring that the specifics of the alternative investment industry are properly understood and taken into account in future regulatory and fiscal frameworks is key. Finally, human capital continues to be a central priority. As AI reshapes operating models, our committees are working to better understand how talent requirements will evolve, while ensuring that Luxembourg remains an attractive, adaptable and competitive location with the right skills and expertise to support the industry’s future growth.
We are fortunate to be at the heart of a well-developed industry that continues to grow strongly.
How does the L3A promote the interests of its alternative administrator members?
L3A promotes the interests of its members through a well-established and increasingly active platform built around collaboration, representation and communication. Firstly, our Permanent Committees — Operations, Tax & Regulatory, HR, and Events & Communication —provide a structured forum for members to actively contribute to topics of strategic importance, develop practical recommendations, and help shape the evolution of our sector. Secondly, the combination of full members, being alternative administrators, and associate members from across the industry ecosystem ensures that we benefit from a comprehensive and well-rounded perspective. This diversity of expertise strengthens the quality of discussions, allowing us to better identify both the challenges and opportunities facing the industry and to address them in a pragmatic and coordinated way. Finally, we make extensive use of LinkedIn to share insights and developments, while our upgraded website serves as a key hub for the Association’s activities, including a growing range of publications showcasing the valuable work carried out by our committees.
What challenges and opportunities do you see for the future?
I continue to see significant opportunities for our industry. We remain at the heart of a well-established and resilient sector that continues to grow strongly, even against a complex macroeconomic backdrop. Data from Preqin suggests that total alternatives assets could exceed $30 trillion by 2030, representing close to 50% growth compared with current levels. At the same time, artificial intelligence represents both a major opportunity and a challenge for our members. On the one hand, it offers the potential to transform operating models, drive efficiencies and enhance the quality and timeliness of services provided to clients. On the other hand, it requires careful consideration around implementation, governance and risk management.It is therefore essential that we encourage our members to fully embrace the opportunities presented by AI, while ensuring that their operating models remain robust, scalable and aligned with client expectations. By doing so, we can help ensure that Luxembourg not only keeps pace with change but continues to position itself ahead of its peers as a leading global hub for alternative investment servicing.