Private Equity in Luxembourg
3rd Edition, November 2016 (Listed members updated in August 2017)
Foreword by the President of LPEA
Luxembourg is now firmly established as the jurisdiction of choice for the European Private Equity industry. Luxembourg is home today to over 80 Private Equity firms with most of the large European GPs and many of the large US GPs now having established operations in Luxembourg. According to LPEA estimates the industry’s assets under management in Luxembourg have boomed to over $300 billion, a figure we expect to continue increasing as new players discover the many advantages this domicile offers.
Multiple factors have been contributing to the industry’s growth. Besides a legal toolbox second to none (Funds, ManCos, Special Purpose Vehicles), political and economic stability, and predictable taxation on the back of an unrivalled financial infrastructure, Luxembourg boasts a business friendly attitude combined with a strong governmental commitment towards Private Equity.
While a wide range of private equity and venture capital funds have been using Luxembourg’s SPV structure and double taxation treaty network as a hub for their cross-border investments, making their structuring both efficient and neutral, an ever growing number of firms are setting up middle and front office operations in Luxembourg to benefit from Luxembourg’s critical size and expertise as Europe’s leading AIFM-EuVECA-UCITS center. This brochure aims to provide Private Equity professionals (LPs included!) and their advisers with a comprehensive yet focused overview of the general business, legal, tax and regulatory environment that Luxembourg offers to the Private Equity industry. Whether you are exploring Luxembourg for the first time or you are refreshing your knowledge, we trust you will find this brochure useful and we at the LPEA are at your disposal to provide you with any further information you may need.