LPEA
A European safe harbour for private equity By Stephane Pesch
A
s the world tumbles into a period of economic and political uncertainty, private equity relies on its long term investment strategy and eyes the calm after the storm. Meanwhile, investors and fund managers are drawn to the safe harbour of Luxembourg, one of the few they can rely on these days. Luxembourg has built a reputation as a cross border platform mainly for its capacity to offer an advanced and complete set of legal tools that suit different investors’ needs, especially after the implementation of the AIFM directive. More recently, we observed a diversification of the reasons bringing new private equity and venture capital players to Luxembourg, among which Brexit comes 20
out on top. The quest for an EU passport has been a strong driver for new business in Luxembourg but not exclusively so. Many managers are also attracted by the growing number of family offices present in the country and come to the Grand Duchy to find new investors for their funds. Others still, come for the specialised offer of services tailored to international PE transactions. As it nests further into the complex world of PE, the sector’s concerns and trends are very much aligned with those of its international peers. Digitalisation is on top of the agenda as a way to reach further efficiency. This is done to better comply with legal obligations or to increase reporting standards. Standards which increasingly include aspects related to ESG LUXEMBOURG FUND SERVICES IN FOCUS | Oct 2020
