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Business Special: Asset Management, Private Equity and More
Thanks to its political stability, multilingual environment and position at the heart of Europe, the Benelux region is a prime location for international business and finance. This month, we meet the region’s experts in asset management, private equity and more.
PHOTOS: PEXELS
Connecting with the world The Benelux region offers a wide range of financial services connecting investors and markets internationally. For example, Luxembourg’s distinctive cross-border expertise attracts financial service providers from all over the world, while the country’s capital markets infrastructure makes it the perfect location for companies of various types and sizes to finance their activities both in Europe and further afield.
From private equity and venture capital, to hedge funds and real estate funds, the Benelux region’s international business environment is thriving. It is no surprise that so many of the world’s top asset managers have chosen the Benelux as the centre for their international fund ranges.
Benefits of the Benelux: – Innovative environment for start-ups – Cross-border expertise – Strong economy and job security – Low public debt – Robust ICT ecosystem – Multilingual environment – International reach
Spirit Asset Management Drawing expertise from every corner of the respected Luxembourg banking sector, Spirit Asset Management nurtures close relationships with clients, partners and families alike — to ensure a complete and honest approach to wealth management.
ifsam Bridging the gap between institutional investors and international asset management companies, Luxembourg-based ifsam is one of the world’s most seamless intermediaries in the fund distribution chain.
OmniTrust Luxembourg’s OmniTrust is just the right size — large enough to handle a comprehensive range of fiduciary and administrative requirements, but small enough to be flexible and friendly.
CACEIS Headquartered in Paris and with offices all across Europe but also in Hong Kong, Canada and Latin-America, CACEIS has established itself as a true European leader in asset servicing and is one of the key players internationally.
| February 2020| February 2020 United United is an independent service provider with nine offices worldwide, two of which are in the Benelux. The company was founded in 2009 by a group of financial industry veterans with years of experience working for large multinational banks.
Prisma The challenges of the financial sector are plentiful: regulations become increasingly complex; and technological developments shake up the industry. Prisma delivers financial documents to support clients in their endeavour to wow investors; and comply with any local regulations.
LPEA Luxembourg is quickly becoming a hub for Private Equity (PE) and Venture Capital (VC) activity. To meet the increased appetite from investors for PE, the Luxembourg Private Equity and Venture Capital Association (LPEA) has positioned itself as a guiding force for PE and VC practitioners across the country.
A wealth manager that moves with the times
TEXT: KATE HARVEY | PHOTOS: SPIRIT ASSET MANAGEMENT
There’s no need to overcomplicate the future of your estate. Drawing expertise from every corner of the respected Luxembourg banking sector, Spirit Asset Management nurtures close relationships with clients, partners and families alike – to ensure a complete and honest approach to wealth management. We spoke to co-managers, François-Régis Montazel and Caroline Quéré, to find out what they have planned for 2020 and beyond.
Excellent connections throughout Luxembourg Luxembourg’s financial centre is built upon three key pillars: professionalism, competence, and strict regulation under the CSSF. So, when Spirit Asset Management was established there in 2015, its founding entrepreneurs based their company on the same principles. “It is these values that our customers are ultimately searching for,” explains M. Quéré.
And while its wealth management company remains fully independent, it regularly engages with the local community of global service providers. For example, it has delegated its external auditing process to KPMG Luxembourg, and its internal audit to Deloitte Luxembourg. Such is the spirit of operating in such a compact hub. “Luxembourg’s international environment and outstanding infrastructure make it highly attractive for investors.”
Tailor-made solutions at the heart of Europe Thanks to rigorous European legislation such as the MIFID II regulation, working with Spirit AM guarantees complete transparency across investments, costs and reporting. Its “discretionary management” and “advisory” mandates allow clients to invest openly in the universe of investment funds and assets available.
The open architecture that drives Spirit AM means that clients’ assets can be invested in third parties, but also in funds managed by Spirit AM: “The funds we select are managed by the largest international companies in Luxembourg,” reveals M. Montazel. They are selected on qualitative criteria alone, and according to the needs of each client.
Wealth planning according to each client Clients appreciate Spirit’s paternal role when it comes to wealth planning. “We’re there not only to manage assets, but also to explain how it works,” says M. Montazel. Spirit Asset Management operates on a tripartite relationship with its banking partners: “Our clients sign a mandate with us which authorises Spirit AM to manage their assets – and that alone. Clients, as account holders, maintain the relationship with the bank for all other banking activities,” explains M. Montazel.
Its banking network extends throughout Luxembourg, Germany and Belgium – and each client receives a customised solution based on their profile.
A family company, above all else With a generational shift underway, it’s no wonder that clients are searching for the
best wealth solutions for their loved ones. Spirit Asset Management has accompanied families over several generations, thanks to over 30 years of experience on the Luxembourg circuit for some of their customer relationship officers: “We like to meet each family member to get to know them better, and therefore serve them better,” says M. Quéré.
Spirit takes an educational approach to inheritance planning; offering advice on how to diversify inheritance and protect future generations in uncertain times. It spends a lot of time explaining how different financial products work; “which clients really appreciate,” M. Quéré continues.
Many of its clients require family wealth planning, and Spirit is a firm believer in generating stable performance with minimum risk. Just before the financial crisis of 2008, Spirit launched its own ‘Ganador Spirit Invest’ fund, which effectively allows clients to see just how well it manages risk in difficult contexts. Clients are therefore guaranteed a long and fruitful relationship in the hands of the highly competent team.
Riding the waves of change The digital age has arrived, and there’s no turning back in sight. SAM has wholeheart
edly embraced such changes by reinventing the traditional private banking model. It offers new and high-tech services in partnership with depositary banks – that are particularly attractive for the millennial generation.
Its motto is to ‘make complex easy’, which is why it also offers three different profiles for investors: fixed-income, balanced and growth. Each profile is flexible and scalable, following an in-depth discussion with the client. It seems there has never been a better time to invest. Expanding a highly skilled team of experts “In terms of performance, 2019 has been an exceptional year for Spirit Asset Management,” M. Montazel reveals. Keen to grow in such promising conditions, the multilingual team of experts is now recruiting experienced managers who share SAM’s entrepreneurial spirit.
Don’t hesitate to get in contact and/ or visit the Spirit Asset Management website: www.spirit-am.lu Email: info@spirit-am.lu
Your independent B2B fund platform
Bridging the gap between institutional investors and international asset management companies, Luxembourgbased ifsam S.A. is one of the world’s most seamless intermediaries in the fund distribution chain.
Uniting the local and global As one of the first independent B2B fund platforms, ifsam S.A. has mastered the subtle art of fund business. Upon opening an account, clients are guaranteed immediate connection to an important fund network; one which already contains over 125,000 funds from more than 40 different domiciles. Managing partner and co-founder Luc Duarte likens ifsam S.A. to “your very own cooperative partner”; one that executes fund orders, manages the custody of fund shares, and negotiates distribution agreements on your behalf. With a worldwide clientele of international banks, private banks, wealth managers and insurance companies, ifsam S.A. places clients at the heart of the global fund community.
Working hand in hand with asset managers Its fountain of resources does not stop
TEXT: KATE HARVEY | PHOTOS: IFSAM S.A.
there. ifsam S.A. can also help asset managers to streamline their own distribution process, thanks to the large number of institutional investors using its services. “We help asset managers to promote their products to ifsam S.A. customers, while satisfying their ‘Know-Your-Distributor’ obligations. The possibilities are endless thanks to our ever-growing international network.”
Making the complex simple ifsam S.A. are industry experts in all things fund-related. Whether they are mutual funds, hedge/alternative funds or ETFs, clients are guaranteed specialist advice. “Operationally, we act as a onestop-shop,” explains Mr Duarte, and we can handle all types of funds – from the easiest to the most complex. Thanks to a network of over 1,000 depository accounts, each client receives a custom-fit solution when it comes to sub-custodian services.
They are also willing to step in and negotiate dedicated distribution agreements when necessary, and can also “provide independent fund research to help customers select the most promising funds,” says Mr Duarte.
Worlds apart from other fund platforms Headquartered in Luxembourg, ifsam S.A. develops longstanding relationships, no matter the vision. Its exceptional degree of flexibility is what sets the firm apart from the rest. “We will always go the extra mile for our clients and partners: whether they need a new connectivity channel, or even if they would like to access ‘white labelled solutions’.”
In 2020 and beyond With the turn of a new decade, ifsam S.A. continues to improve the experience for clients and partners. For clients, this means enhanced fund research capabilities, a promising ETF offering and a growing network in Asia. And for asset managers or management companies, the firm plans to further support its distributor oversight responsibilities. Getting involved in third-party funds business has never been so easy.
The Goldilocks partner
TEXT: MARTIN PILKINGTON | PHOTOS: OMNITRUST
Luxembourg’s OmniTrust is just the right size – large enough to handle a comprehensive range of fiduciary and administrative requirements, but small enough to be flexible and friendly.
List the administrative tasks that entrepreneurs and corporate leaders know have to be done, but would really prefer someone else handled, and you’ll pretty much summarise what Luxembourg’s OmniTrust has been designed to do. “People who head companies want to focus on building a stronger business,” says Aurore Calvi, OmniTrust’s CEO, “so their time is generally best spent finding new opportunities, meeting new challenges, reaching out in new directions. That’s made easier if they can let someone else take all or some of the load of those fiduciary, regulatory and paperwork requirements that underpin an organisation, and keep it in good standing with the authorities. That’s what we at OmniTrust do.” Professional expertise Mme Calvi has been operating in this sector in Luxembourg for nearly 20 years, experience that has given her a vision of the support that clients need, and how best to deliver it. She was delighted when last year the opportunity arose to acquire and head up OmniTrust. “The business has been in this field since 1993,” she explains, “and it has great people working for it, among them lawyers and accountants who’ve worked in ‘big four’ accountancy firms, stockmarket quoted fiduciary organisations, and major law practises.”
Her vision in the simplest terms is to ease the administrative load of OmniTrust’s clients, with clear routes to that goal.
Digitisation The first is to embrace and facilitate the digitisation of VAT, tax, accounting and other reporting functions, thereby simultaneously meeting external legal obligations and providing timely and accurate internal data. With such information more readily to hand, stakeholders, especially senior management and shareholders, can operate with greater certainty and efficacy.
Second, and perhaps even more significant, is a desire to put the client at the heart of how OmniTrust interacts with them. “Ours is a human-scale firm, flexible and agile,” says Calvi, “In total, we’re 19 professionals, and our goal is always to work in partnership with clients. It’s not the ‘billings’ mindset that some leviathan organisations have. And we aim to grow long-term relationships by having the same people remain involved, instead of, as can too often be the case with massive providers, clients constantly seeing new faces. Likewise, we adapt to their culture rather than imposing ours.”
And the third strand in the philosophy is to focus not just on short-term profitability for the client, but to embrace a more
holistic approach, providing added value through strategic input, working side by side to support as advisors in a multitude of ways.
Local and international There is something of a paradox about the Luxembourg business environment. On the one hand it’s one of the smallest countries in Europe; on the other it is perhaps Europe’s most international market, increasingly important as a centre for corporate headquarters. For companies from outside the country, that means it makes sense to work with a truly local fiduciary and business services partner, one with excellent personal contacts and networks in place: for example, to assist in finding great office space (and in the
thriving Luxembourg market that can be far from easy), or with knowing the ropes when obtaining business licences. OmniTrust can offer those national connections, but it also has an international outlook. “Along with our Luxembourg clientele, we have major links with French, British, Belgian, Italian, US, Chinese and Russian clients,” says Calvi, “and it’s a point of honour with us, as far as is possible, to interact with them in their mother tongue. All our team members are at least bilingual, and along with the languages needed for the markets just mentioned, we offer German, Portuguese, Romanian and Spanish, for example.”
That same international outlook and that belief in the power of local contacts is
reflected in OmniTrust’s participation in the Kreston network, some 200 firms engaged in similar activities to theirs across 125 countries.
The future looks bright for the firm, strengthening its position in the Luxembourg market and doing more and more business with international organisations drawn to it. But Mme Calvi has plans for OmniTrust to continue to evolve and develop: “We’re preparing an extension to our service portfolio, again to help us in being not only a client’s fiduciary agent, but also their day-to-day partner. It’s too soon to give greater detail, but obviously we think it will add value to what we do.” Watch this space.
OmniTrust’s Main Activities – Accountancy – Tax and VAT compliance – Office facilities and registered addresses – Payroll administration – Regulatory services – Luxembourg directors – Interim or longer-term staff – Company secretarial function – Business set-up formalities – Liquidation
UNITED
On the cutting edge of modern finance
Looking for cross-border financial services with a personal touch and a hightech twist? Meet United, ten years young but packing a wealth of expertise, plus a passion to keep its clients – multinationals, investment industry players and wealthy individuals – successful and, above all, compliant.
United is an independent service provider with nine offices worldwide, two of which are in the Benelux. To find out more, let’s hear from directors Marius de Groot (Netherlands) and Gérard Matheis (Luxembourg). The company was founded in 2009 by a group of financial industry veterans (including Matheis) with years of experience working for large multinational banks. Their drive was — and is — to
TEXT: UNITED | PHOTOS: PEXELS
provide truly personal service, and they are still the backbone of United. By now, United’s workforce has grown to some 150 legal, financial and IT experts.
Truly personal Asked what they mean by “truly personal”, de Groot replies: “Our people start from day one with their own client portfolio. Their mission: to get to know their clients and their needs, to become partners rather than just service providers, shouldering the responsibility that implies.”
Matheis nods, adding: “Corporates and fund initiators like us because of our ‘boutique’ offering. We can create a custom service package for them, including only the services they want. Because they can choose to outsource more or less to us over time, our services always blend seamlessly with their processes.”
Team spirit The name United was chosen for a reason, Matheis explains. “It reflects our strong team spirit and the essence of what we do: unite disciplines, connect networks and cross borders to create the best solutions for our clients. Our people worldwide, management included, work closely together to give our clients the benefit of every office’s particular strengths.” But teamwork doesn’t stop there, De Groot observes. “Our experts are an extension of our client’s team, working side by side with them to help their business thrive.”
Headquarters United’s headquarters are in the Netherlands — a choice with many benefits. “The Netherlands has a long history of international commerce. In IT terms, it’s one of the world’s most wired countries and home to numerous IT multinationals,” De Groot explains. “Today, Amsterdam is a hotspot for fintech and start-ups in general, while the pension system makes it a hub for large institutional investors. As an EU jurisdiction, it offers a wide variety of legal structures and tax treaties. Plus, the Netherlands is at the forefront of developments in compliance.”
Business mix All United’s offices are a one-stop shop offering the full suite of financial and legal services, but they each have their specialties. “In Luxembourg, fund services now account for 30 per cent of our business,” says Matheis. “In the current low-interest environment, private equity and venture capital funds have become increasingly popular, and a lot of these new funds work with United.”
The Netherlands office increasingly supports companies from the US — and in
future, likely also from the UK — seeking an operational hub in the EU. “Another growth niche,” De Groot adds, “is facilitating M&A deals for private equity firms.”
Compliance Core business for United is keeping clients compliant in the face of constantly changing regulations. Matheis gives an example: “The introduction in 2013 of AIFMD (alternative investment fund managers directive) led many offshore funds to onshore their operations in Luxembourg. United responded with a tailored, modular service offering, which has gained recognition and a serious base of loyal clients in the fund space.”
The Netherlands, meanwhile, is the most heavily regulated jurisdiction in Europe, and the only country with specific legislation aimed at trust offices, De Groot observes. “The practical implications are challenging, but the clients who come to us know this, and understand that heavier regulation involves higher costs. At its foundation, United made a voluntary decision to adhere to the heaviest regulation in the financial industry, and our success in doing so is certified year after year by a
Advances in IT Asked what trends they see for the years ahead, Matheis replies: “When United was founded, we expected compliance would become key, and we were right. Its importance will only increase going forward. Meanwhile, work processes in our industry are in many cases still very paper-based, so companies will need better IT to operate more efficiently.”
De Groot agrees. “When we complete the group-wide IT projects we’re working on at United now – including the implementation of a brand-new AI-based compliance decision platform called Pascal – we’ll have a truly state-of-theart IT infrastructure, speeding up our processes and giving our people more time to spend on personal contact with their clients. That will pave the way for expansion into other jurisdictions and create a solid foundation for our further success going forward.”
www.uibt.com
Olivier Storme.
A truly global asset servicing partner
Headquartered in Paris and with offices all across Europe but also in Hong Kong, Canada and Latin-America, CACEIS is a renowned asset servicing bank, specialising in the whole post-trade functions related to all asset classes. Following the recent strategic combination of CACEIS and Santander Securities Services, we spoke to Olivier Storme, country managing director of CACEIS in Belgium and head of regional coverage for Belgium, Luxembourg & Nordic countries, to find out more about the firm’s innovative product offering and international growth.
Founded in France in 2005 on the basis of the asset servicing activities of Crédit Agricole and Caisses d’Epargnes, CACEIS has established itself as a true European leader in asset servicing and is one of the key players internationally.
TEXT: ANNA VILLELEGER | PHOTOS: CACEIS
some functions which are centralised (IT, custody, banking, etc.) mainly in France or in Luxembourg, but with many others which remain at local level with their own “identity”, able to adapt accordingly to meet the needs and culture of the client.
With a solid IT infrastructure, CACEIS provides execution, clearing, custody, depositary and asset valuation services in markets worldwide to support institutional and corporate clients in meeting their business development goals, being in vanilla assets, derivatives, securitisation, real-estate or private equity.
“Our two Belgium entities consist of a smaller but very agile team of 50 staff,” says the financier. “The complete set of services is proposed locally to our clients; our team is well equipped to act quickly and provide clients with whatever solutions and answers they are looking for.”
in terms of assets, clients and geographical coverage in the last few years. “We keep-on benefiting from the full support of our shareholders to continue to grow.”
The acquisition of KAS BANK in 2019 bolstered the company’s position in the Netherlands, Germany and the United Kingdom, bringing vast expertise in pension funds to the range of services offered to institutional and asset management companies.
What Olivier Storme describes as a “great year” for the company was topped off with the combination of CACEIS and Santander Securities Services (S3) in late December. The group is now even better placed to capture growth in high potential markets, such as Spain and Latin America, and offers clients a truly global service proposition.
To find out more about CACEIS visit: www.caceis.com
TEXT: COLETTE DAVIDSON | PHOTOS: LPEA
While the concept of private equity can seem intimidating, it doesn’t have to be. The Luxembourg Private Equity and Venture Capital Association aims to make the practice accessible to a wider community, through education and public advocacy.
Luxembourg is quickly becoming a hub for Private Equity (PE) and Venture Capital (VC) activity, thanks to its political stability, business mindset and professional ecosystem with crossborder expertise. To meet the increased appetite from investors for PE, the Luxembourg Private
Equity and Venture Capital Association (LPEA) has positioned itself as a guiding force for PE and VC practitioners across the country.
The LPEA regularly leads workshops, networking events and other trainings in order to inform those looking to gain expertise in PE/ VC, with the ultimate objective of protecting the interests of its members and promote Luxembourg as an international hub.
Their annual Insights Conference, held this year on 12 May, looks to share with attendees the PE/VC investment trends as well as how and where to invest in the space, by
showcasing leading international investors. The Prime Minister of Luxembourg will lead the opening speech.
“Most international PE/VC investment firms have a domicile here in Luxembourg,” says Rajaa Mekouar-Schneider, the CEO of LPEA. “So we are the place to structure their investments and understand what’s going on as well as the opportunities in the field, which includes mature investments but also Venture Capital and an ever wider range of investors.”
With a largely international staff – speaking a total of 14 languages – the LPEA aims to bring professionals from different walks of life together towards a common goal. It offers three different membership options, aimed at investment firms, family offices and private banks from the investors´ side, as well as audit firms and lawyers, among others, on the advisers’ side.
www.lpea.lu
xxx The challenges of the financial sector are plentiful: regulations become increasingly complex; and technological developments shake up the industry. Prisma delivers financial documents to support clients in their endeavour to wow investors; and comply with any local regulations.
Prisma is an expert at laying the solid foundations that every business needs to thrive, providing services ranging from specialised project management to financial translations to support with the production and dissemination of financial documents.
The Prisma team is highly experienced: the company was founded in 2006 and now services 26 key players in the mutual fund industry in Luxembourg, the UK, Ireland, France, Germany and Singapore. Based in Luxembourg, they boast a translation portfolio offering all Western European and most Asian and Middle Eastern languages, catering to the dynamic finance community at the heart of Europe.
There is no run-of-the-mill solution at Prisma. Every client deserves a personalised approach, fully integrated in their way of working. Asset managers face high
TEXT: LAURA GOZZI | PHOTOS: PRISMA
demands from regulators and investors alike. Prisma can alleviate the pressure by simplifying the production of prospectus updates, forms and KIIDs, all while promising to keep stakeholders informed and satisfied. The complex logistics of annual general meetings can also be taken care of, relieving businesses from the burden of having to juggle the needs of several parties.
By offering global distribution support, Prisma arranges the filing of regulatory documents in a variety of jurisdictions. The Prisma approach handles client needs first in all production stages, from translation to the distribution of the documents.
If you’re looking to attract investors, Prisma can help with fact sheets and marketing brochures: an investment in your sales tools pays off on the long run.
Prisma’s promise is to exceed expectations by running the support services with as little client involvement as possible, leaving you to focus on your business.
With many firms playing catch-up in terms of sustainability, it’s reassuring that social responsibility has always been at Prisma’s core, with values of integrity and ethical behaviour taking centre stage. “We didn’t need a management decision or approval to adopt a corporate social responsibility approach,” they say. “Sustainability – whether social, economic or environmental – is a part of our identity.” A comprehensive list of over a dozen charitable initiatives and partners is available on Prisma’s website.
Prisma’s New Year’s resolutions are ambitious and clear: ensuring that all agreed deadlines are always met without compromising on flexibility, communicating in a courteous, friendly and professional manner, and being a trustworthy and reliable partner to all clients.
If the last 14 years are anything to go by, Prisma is right on track to honour its resolutions and continue setting the gold standard in financial communication.
Prisma S.A. 8-10, rue Jean Monnet L-2180 Luxembourg Grand-Duchy of Luxembourg Tel: (+352) 43 48 89 – 1 www.prisma.lu
