ACTIVITY &
PERFORMANCE
MANAGEMENT REPORT
GLOBAL CONTEXT
2025 has proven to be a highly unpredictable year on
many fronts. International trade came under pressure
from new tariffs, while long-standing strategic alliances
were increasingly reassessed. Relationships that had
been built over decades were, at times, tested by short-
term negotiation dynamics. At the same time, efforts to
advance peace talks in the Russia-Ukraine conflict delivered
limited progress. Although geopolitical developments
generated elevated policy uncertainty and market volatility,
concrete outcomes remained constrained, contributing
to a more complex investment environment In such an
environment, wise investors sought to remain disci-
plined, focusing on long-term fundamentals to guide
their investment decisions.
Overall, both the American and European economies
proved relatively resilient, with GDP growth ranging
between 1.5% and 2.0%. Growth was driven by contained
inflation and gradually declining interest rates, follow-
ing policy easing by both the Federal Reserve and the
European Central Bank.
Equity markets, despite heightened volatility, delivered
solid overall returns in 2025. In the United States, per-
formance was largely driven by continued strength in
the technology sector, while European markets regained
momentum on the back of large-scale government
spending programs.
The US dollar, however, weakened materially over the
year amid growing concerns over the country's growing
indebtedness. It depreciated by 13% against the euro,
reaching 1.17 USD/EUR, negatively impacting returns on
US-denominated assets for European-based investors.
LUXEMPART PERFORMANCE
Luxempart achieved a strong second half-year 2025
with an overall performance of +8.6% over the period.
Both Direct Investments and Investment funds con-
tributed positively with returns of +10.4% and +7.3%
respectively.
On the whole year, our NAV increased by +9.3%, crossing
for the first time the EUR 2.5bn bar, at EUR 2,526m, com-
pared to EUR 2,311m at 31 December 2024. Adjusted
for the dividend paid in May 2025, the overall Group's
performance was of +11.3% in 2025; and adjusted for
negative currency effects over the year, our annual per-
formance would have been of +11.9%.
Over a 4-year period, Luxempart has generated an annu-
alised IRR of 5.7%, below our long-term track record. This
can be explained by the difficult environment private
equity has been navigating through since 2022, when
interest rates increased and transaction levels slowed
down. This return still compares favorably to our bench-
mark index, the MSCI Europe Mid Cap Net return index
which generated an annualised IRR of 5.45% over the
same period.
2025 was marked by one large exit of Nexus AG in
April and two smaller disposals (the completion of our
investment in Marlink and the sale of our non-strategic
listed holding in IHS). On the front of new investments,
the acquisition of German mental healthcare platform
Valeara was signed in November 2025, and 12 new
commitments were taken in Investment Funds, primarily
in the US. In total we deployed EUR 165.3m in 2025,
across both activities, while generating EUR 255.5m of
proceeds, fund distributions and income from portfolio
companies (including dividends).
Our Group's financial liquidity stood at EUR 212.1m, or
8.4% of our total NAV, providing flexibility to pursue
attractive opportunities on the market. This liquidity
position is complemented by five committed credit
facilities of EUR 225.0m in total. Those credit facilities
were totally undrawn at 31 December 2025.
Aligned with our long-term investment philosophy, in
2025 we became a signatory to the United Nations-
supported Principles for Responsible Investment (PRI).
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LUXEMPART ANNUAL REPORT 2025
