Luxembourg Private Equity mission to the US

Summary of LPEA’s workshops in New York and Boston (May 2016)

Pierre Weimerskirch (Luxembourg Investment Solutions) and Anja Grenner (SGG) presenting in Boston.

LPEA held its 4th mission to the US on May 25th and 26th with the organisation of two breakfast sessions in New York and Boston. With three previous visits to New York, this was the first time a Luxembourg delegation presented in Boston for the local PE-VC community.

LPEA’s presentations in the US are now a regular initiative in the international promotion of Luxembourg as a PE hub. For many years Luxembourg has attracted the major PE firms and their interest continues to grow. Several factors contribute to this preference for Luxembourg as a location of choice to centralise operations:

  • Fully fledged toolbox to setup and manage PE-VC funds
  • One-stop shop with easy access to legal, tax and auditing experts
  • Quick time to market with further improvements to come soon (RAIF)
  • Pure cross-border marketplace with 6.000 multi-lingual professionals in the alternatives industry alone
  • Double taxation agreements with 90+ countries
  • Access to authorities with 1-to-1 meetings

The sessions held in the US, notably in New York and Boston, two of the major locations where global US PE firms are located, target different subjects but remain loyal to the main topics investors are looking for:

  • AIFMD & Distribution (license, regulation, third party solutions…)
  • Luxembourg Limited Partnership
  • Introduction of the Reserved Alternative Investment Fund (indirect regulation)
  • Structuring and Governance of PE funds
  • Impact of BEPS
  • Change of the Luxembourg Corporate Company Law
  • Private Debt

LPEA roadshows have attracted the attention of major PE houses such as Apollo Global Management, The Carlyle Group, Alliance Bernstein or Audax Group amongst a wide range of small to large investors as well as a wide community of legal and tax experts accessorizing cross-border operations.

The presence of Luxembourg authorities in such presentations is also revealing of the country’s commitment to promote the marketplace abroad. While the Hereditary Grand-Duke of Luxemburg Prince Guillaume attended the latest event, the Ministers of Economy and of Finance, as well as the Consul General of Luxembourg in New York, are regular speakers at the events and showcase Luxembourg’s openness to change the industry towards the needs of the investors.

For those less aware of Luxembourg’s latest developments, Paul Junck, Managing Director of LPEA, summarises the trends shaping the sector:

“Luxembourg is for long known as a reliable PE hub, with 9 of the 10 major PE firms doing business in the country already. Some of the bigger players manage funds worth $1B or more such as Ardian, Astorg, Castik, EQT, PAI or Goldman Sachs, among others. The trend is definitely to increase the AuM figures, especially when it comes to debt funds which number increased by 500% in the past 3 years or the growing number of smaller funds ($400-500m)”.

The market has not increased by chance. “The expansion of existing platforms and the new business, much of it from the US, results of the decline in the use of reverse solicitation and national private placement regimes to raise funds in Europe, a consequence of the implementation of the AIFMD.”

“Luxembourg, having a well-oiled machine in the retail funds industry – the 2nd biggest market worldwide after the US with over $3.8B of AuM today, applied the same expertise to develop vehicles and regimes aimed at facilitating the investment process while respecting all sort of regulation and international agreements towards a level playing field. The use of Luxembourg’s toolbox with the preference for dealing with less jurisdictions by the investors, turns Luxembourg into a sweet spot for alternatives investors in general and in particular for those dealing with PE and VC.”

LPEA plans to return to the US on October 5th to provide a new market update and share the latest trends.

To stay informed of upcoming events please contact lpea-office@lpea.lu.

From left to right: Jerome Wittamer (President of LPEA), H.E. Étienne Schneider
(Minister of the Economy of Grand Duchy of Luxembourg), H.R.H Prince Guillaume (Hereditary Grand-Duke of Luxemburg), H.R.H Princess Stéphanie (Hereditary GrandDuchess of Luxembourg), Paul Junck (Managing Director of LPEA).

New York session (25 May 2016)

Nigel Williams (Royalton Partners) presenting in New York.

New York session.

Further pictures of the NY event can be found here and of the Boston event here.

About LPEA

The Luxembourg Private Equity and Venture Capital Association (LPEA) is the representative body of private equity and venture capital professionals in Luxembourg.

With over 130 members, LPEA plays a leading role in the discussion and development of the investment framework and actively promotes the industry beyond the country’s borders.

Luxembourg disposes of a stable tax regime and is today at the forefront of international PE regulation providing a flexible, secure, predictable and multi-lingual jurisdiction to operate in.

LPEA provides a dynamic and interactive platform for its members to discuss and exchange information and organises working meetings and networking opportunities on a regular basis.

The national PE-VE association has since 2012 invested in the international promotion of Luxembourg’s thriving PE-VC sector by way of presentations in key markets such as London, Munich, Paris, Zurich and Stockholm, alongside its regular presence in international conferences such as SuperReturn International.