With over EUR 4 trillion in net assets under management as of May 2018, Luxembourg is the largest investment fund centre in Europe and the second largest globally after the US. It is also the largest global distribution centre for investment funds, with its funds offered in more than 70 countries around the world, according to ALFI, the Association of the Luxembourg Fund Industry.
Luxembourg's investment funds have a dominant share in both the retail and the institutional marketplace in Europe, and they are the vehicle of choice in many parts of Asia, Latin America and the Middle East. Luxembourg is also a major centre for alternative asset classes with more than EUR 650 billion of assets managed by alternative fund managers.
The Luxembourg players at this Roundtable see allocations toward alternatives increasing with the jurisdiction further strengthening its position. Eight of the top 10 PE managers are now in Luxembourg with a strong influx particularly from US and UK managers.
In 2017, Luxembourg UCITS funds grew by 11.9% while Alternative Investment Funds (AIF) grew by 15.1%. Fundraising is happening much quicker and vintages of fund are coming faster. As another data point, EY's real estate business grew by 38% in the same year.
At this Roundtable discussion, sponsored by SANNE and LIS,
- Joëlle Hauser, Clifford Chance
- Martin Dobbins, TRINOVA Group
- Mike Hornsby, EY
- Claus Mansfeldt, SwanCap
- Thibaut Partsch, Loyens & Loeff
- Sean Murray, Managing Director, Alternative Assets - EMEA, SANNE
- Pierre Weimerskirch, LIS
The group also discussed:
- How digitalisation of back and middle offices processes and robotisation of tasks are changing the industry.
- How to best integrate FinTech into your organisation's ecosystem and why is the level of innovation at the GP level in the PE industry so low?
- Artificial intelligence in law firms and how is BREXIT affecting Luxembourg business?
- Growth and opportunities in real estate funds. Regulations: Why businesses in the end benefit from GDPR.
- How to make AIFM work. Is BEPS affecting Luxembourg's funds industry?
- Distribution challenge in PE: As most funds aren't EuVeCa compliant, getting to the only well informed investor has become very difficult.
- The emergence of the Luxembourg based investor, from niche to core: The path of private equity and what Luxembourg is ahead and leading in Fund Financing.
- Stepping up the Game: ESG, coaching for directors, sustainable financing, clean-tech.
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