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LPEA ANNUAL REPORT 2016

Annual Report Report 2016

Index

Introduction

Private Equity & Venture Capital in Luxembourg

About LPEA

2016 – A Year in Review

Priorities for the Future

Membership

Financials


Dear Members of LPEA,

Dear readers,

2016 brought about abrupt political changes that will have consequences on the private equity and venture capital industry. We entered the new year with more questions than answers on the possible futures ahead of us.

First, the UK’s vote to leave the European Union is a major setback in an unprecedented 60 years history of  European economic integration. It stands out as an event which will have rapid repercussions on the British economy, the European single market, but also on the strong interactions that the Luxembourg private equity and venture capital industry has had with the UK’s financial industry and investors.

Second, the unexpected election of Donald Trump as President of the United States further raises the level of uncertainty. How will Trump’s actions impact the political, regulatory and economic environment in which our members do business, both in our region and across the US? Trump’s promise to deregulate could facilitate business in the US and seems to bode well for GPs with investment activities there. However, Trump’s protectionist speech might spur already growing populist/nationalistic movements in Europe and make things worse in the long run for Europeans.

With increased uncertainty comes higher risk and opportunities for the most discriminate investors. This moment is also an opportunity for Luxembourg to become an even more diversified and important global PE hub, with a greater presence of front offices from some of the greatest managers. In just a few years, LPEA has managed to grow from a handful of members to more than 140 by the end of 2016.

In an environment of low interest rates and increased political and regulatory risk, Private Equity and Venture  Capital funds provide not only the fuel of economic growth (growth financing to companies of all sizes) but also high returns to investors. Our industry can only grow in importance since it stands out as a force of economic progress, job creation in the real economy and innovation, but also as a highly desired alternative for investors. Indeed, the ability to spot opportunities and to take risk will continue to define successful GPs in the future.

The role of LPEA remains unchanged: remind stakeholders of our industry’s positive role and importance for the real economy, uphold the dialogue with all relevant public authorities, ensure the competitiveness of Luxembourg as Private Equity and Venture Capital hub, and defend a favorable tax and regulatory environment in Luxembourg and the European Union for PE-VC firms.

As an industry body we should not conclude without underlining that that the Luxembourg Government has been greatly supportive of our industry’s growth. A whole set of initiatives aims at accelerating Luxembourg’s foray into the forefront of Europe’s most progressive and innovative countries, for the benefit of the whole population. From a public commitment to join the Third Industrial Revolution based on Jeremy Rifkin’s recommendations, to a visionary push into FinTech and Space Mining– things are moving forward in the Grand-Duchy.

Jérôme Wittamer

President

Dear Members of LPEA,

Dear readers,

Private Equity and Venture Capital continue to be much coveted asset classes in times of low interest rates, at the same time as they are much coveted sources of company financing for small and medium-sized companies in Europe. PE/VC finances the backbone of our economies, drives innovation and gives millions of people in the world a job. Not everyone is aware of these important facts – hence our mission to promote our industry and create a favourable environment for PEVC activity in Luxembourg and beyond.

In light of our goal to make Luxembourg the prime onshore centre for Private Equity in the world, I can say with confidence that we have had a very fruitful year 2016. LPEA has had a most active year when it comes to international roadshows and national events, increasing our visibility and informing stakeholders both abroad and at home about the advantages of Luxembourg as a PEVC hub and also about the growing importance of the Luxembourg PEVC industry. In times of uncertainty due to Brexit and a changing international tax environment, we made sure to be heard, but also to listen to the concerns of our Members and stakeholders.

The past year also proved the flexibility and reactiveness of the Luxembourg legal and regulatory environment in accommodating our industry by bringing about a new unregulated vehicle in the field of alternative investments, the RAIF, and by reforming the national Company Law to improve the means at hand for company financing and structuring deals from Luxembourg. The “Luxembourg toolbox” keeps on growing and accommodating our industry.

These legislative changes have been inspired by industry stakeholders who are directly impacted by them. I would like to thank our Members who participated actively in elaborating our industry’s position for the Government in the working groups within LPEA’s technical committees. Your dedication has been invaluable in improving the business environment in which we all work and in increasing the reputation of LPEA.

Despite challenges that lie ahead such as the uncertainty that arises with the United Kingdom leaving the  European Union, I am very optimistic that we will be able to turn problems into opportunities, continue attracting global PEVC players to Luxembourg and continue creating the best possible environment for all our Members.

Paul Junck

Managing Director

LPEA’s Annual General Meeting (8/05/2017)

LPEA’s Annual General Meeting

8/05/2017



Guest speaker: Mario Grotz from the Ministry of Economy of Luxembourg presented the Space Resources initiative.

LPEA held its ordinary statutory meeting on May 8th 2017 in the auditorium of Bank de Luxembourg.

The members received the Annual Report for 2016, approved the audited accounts of the association, discharged the auditor and the members of the Board for the year 2016.

The budget for 2017 was also approved with an estimated growth of revenues of 11% and surpassing now €600.000.

There was no place for elections given that the current Board was elected in 2016 with a mandate lasting until the AGM of 2018.

The AGM welcomed the participation of Mario Grotz from the Ministry of Economy who presented the Space Resources initiative conducted by the Luxembourg government. The speaker tried to seduce the PE/VC audience to join the long-term effort which is being put in the development of this new cluster. Space mining is by many compared to the ambitious goals of SES in the 1980s when it started to explore the satellite and communications industry. Today SES is a case study and if well supported, Space Mining may as well be one in the future.



PHOTOS



AGM 2017 (8/05/2017)

AGM – Statutory Meeting & Networking Cocktail

8/05/2017, Banque de Luxembourg


LPEA Annual General Assembly

8/05/2017


Banque de Luxembourg
14, Boulevard Royal, L-2449 Luxembourg

17:30 – Opening of the doors

18:00 – AGM

Guest speech by Mario Grotz on the Space Resources Initiative.

19:00 – Cocktail

Note: Meeting restricted to LPEA Members and invited guests.

To participate please register with the form below:



Mario Grotz
Space Resources Initiative

Ministère de l’Économie – Direction générale Recherche, propriété intellectuelle et nouvelles technologies

Luxembourg is supporting the long-term economic development of new, innovative activities in the space and satellite industries as a key high-tech sector for Luxembourg. While at first the aim is to carry out research in this area, at a later stage it can lead to more concrete activities in space.

The Luxembourg Government announced a series of measures to position Luxembourg as a European hub in the exploration and use of space resources. Amongst the key steps undertaken, as part of the SpaceResources.lu initiative, will be the development of a legal and regulatory framework confirming certainty about the future ownership of minerals extracted in space from Near Earth Objects (NEO’s) such as asteroids.


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The AGM is kindly hosted by Banque de Luxembourg

14, Boulevard Royal
L-2449 Luxembourg


AGM: Venture Capital plays a key role in the future of the Luxembourg economy

AGM: Venture Capital plays a key role in the future of the Luxembourg economy

PRESS RELEASE

9/05/2016

 

AGM: Release of the preliminary results of the GP Survey 2016 and election of new Board of Directors

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The private equity community met today in Banque de Luxembourg for the annual general meeting (AGM) of the Luxembourg Private Equity & Venture Capital Association (LPEA). The external speaker invited for this year was Nicolas Buck, Entrepreneur and Chairman of Fedil who highlighted the role of private equity players in Luxembourg’s growth and especially that of local venture capitalists which can find fertile ground in areas such as ICT, Industry 4.0, Eco Tech, Circular Economy or Social Impact.

The event was also the occasion to release the preliminary results of the GP Survey conducted by LPEA. The survey, a project conducted by the Market Intelligence Committee, collected the opinion of 40 general partners and limited partners operating in Luxembourg and provided an update to the previous survey conducted in 2014. The survey reports that Luxembourg remains a very attractive place for the PE business, even though stability and the tax environment attractiveness have decreased. The main risk to the participant’s business in Luxembourg is the changing tax environment (BEPS) and the reputation of Luxembourg as a financial centre, although the majority of respondents believe Luxembourg being well positioned to deal with regulatory developments.

Jérôme Wittamer (President) and Paul Junck (Managing Director) presented the association’s activities held in 2015 and emphasised the association’s annual growth with an increase of membership from 119 to 132. A summary of the activities held and an updated profile of the association are available in the Annual Report 2015 which is available here.

The AGM elected the 31 Board members that will represent the association in the next two years and which constitute a balanced representation of the two constituencies: PE and VC managers (full members) and service providers (associate members).

For additional information please contact LPEA’s Managing Director Paul Junck on
lpea-office@lpea.lu / +352 28 68 19 – 601.

Pictures Gallery

LPEA Annual General Meeting

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LPEA Annual General Assembly

Banque de Luxembourg
14, Boulevard Royal, L-2449 Luxembourg

17:30 – Opening of the doors

18:00 – AGM

With the guest speech of Nicolas Buck, President of Fedil.

19:00 – Cocktail

Note: Meeting restricted to LPEA Members and invited guests.

To participate please register with the form below:

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