The Luxembourg Private Equity and Venture Capital Association (LPEA) is a member-based, non-profit trade association established in 2010. LPEA represents, promotes and protects the interests of the Luxembourg private equity and venture capital industry.
LPEA's role includes representing the interests of the industry to regulators and standard setters; developing professional standards; providing industry research; professional development and forums, facilitating interaction between its members and key industry participants including institutional investors, entrepreneurs, policymakers and academics.
LPEA's activities cover the whole range of private equity, from venture capital (seed, start-up and development capital), to buyouts and buyins.
The mission of the LPEA is threefold:
1. Towards its members: represent and promote the interest of Private Equity and Venture Capital ("PE") players based in Luxembourg.
2. Towards Luxembourg: support government and private initiatives to enhance the attractiveness of Luxembourg as an international hub for carrying out PE business and/or servicing the PE industry in all its dimensions.
3. Towards the EVCA and other relevant international PE industry bodies: represent the interests of the members of the LPEA and the industry as well as Luxembourg as a place of doing PE business.
II. Scope of action
As a general rule LPEA shall encompass and represent the interests of all actors that shape or serve the PE value chain in Luxembourg, which include:
- fund managers of PE focussed investment vehicles ("General Partners" or "GPs"),
- institutional or non-institutional investors in PE ("Limited Partners" or "LPs"),
- service providers to the PE industry.
The Luxembourg PE industry, however, is distinct from many other countries. Due to the limited size of its domestic market, the added value of Luxembourg for the mostly international GPs is mainly represented by efficient PE transaction and fund structuring possibilities rather than PE investment opportunities on the national territory. This has several implications on the goals, objectives and composition of the LPEA.
First, the Association will focus on the interests of GPs that use Luxembourg as a jurisdiction of choice for structuring and/or administrating their international PE acquisitions and/or their PE funds. The Association will of course also promote investments by PE funds in Luxembourg.
Second, LPEA also represents the interests of the service providers to the local PE industry that form an integral part of the PE value chain and that are essential to the attractiveness of Luxembourg for international GPs. These include in particular law firms, accountants, tax advisors, banks and fund administrators that have set-up dedicated PE servicing practices and for which PE activities are a key component of their firm's strategy.
The key objectives of the LPEA address both components of its mission as described above:
1. Increase the attractiveness, competitiveness and efficiency of the Luxembourg economic, legal, regulatory and operational framework for GPs and their investment structures.
2. Broaden and diversify the elements of the PE industry and value chain that are served out of Luxembourg.
3. Provide thought leadership on the needs of GPs, and the opportunities of the PE industry in Luxembourg.
4. Represent its members and the Luxembourg PE industry at large towards the Luxembourg government and other stakeholders through lobbying activities.
5. Engage in promotion activities for the Luxembourg PE platform in association with other official or industry bodies as appropriate.
6. Be the official interface for the European Private Equity and Venture Capital (EVCA).
7. Be a platform for networking and knowledge exchange of the PE community in Luxembourg.