Is sky the limit?

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Luxembourg Private Equity & Venture Capital Investment Fund Survey

Is sky the limit?

While the latest global fundraising data and the slower pace of capital deployment are raising concerns over the attractiveness of the Private Equity industry, the Luxembourg PE market has seen bold growth since 2017.

In a fast-changing environment, the industry is facing both economic and regulatory challenges. The high concentration of capital (52 percent of total capital raised in 2018 was committed to the 50 largest funds closed during the year) and the increasing difficulties in deploying capital may temper investors’ appetite. Over the recent years, BEPS, AIFMD, and
Brexit have forced fund managers to seek new long-term stable operating solutions. In this context, Luxembourg has often been selected by Global PE Houses as a key jurisdiction in their organization, and their European regulated hub.

While Luxembourg has been active in the PE field for more than two decades, until recently very few large investment vehicles were established in the country. In this new paradigm, the appetite for the Luxembourg fund structuring toolbox has increased beyond expectations over the past few years. The diverse range of vehicles, from unregulated to regulated products, together with the asset class expertise developed over the years within the professional community and the CSSF, are key factors behind this collective success.

The third edition of the Luxembourg PE & VC ALFI Survey is aimed at giving a snapshot of the Luxembourg PE fund industry as at Q3 2019.

We have been collecting data for three years, so for the first time we are in a position to put industry trends into perspective, which has confirmed an unprecedented growth.

We believe that quantifying the trends observed by most Luxembourg financial professionals over the last few years will help bring transparency to this sector, and further boost the credibility of Luxembourg as the new European PE hub.

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The appetite for the Luxembourg fund structuring toolbox has increased beyond expectations

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