WELCOME ADDRESS. HE Gérard Philips, Ambassador of the Grand Duchy of Luxembourg

Transcription

1 WELCOME ADDRESS HE Gérard Philips, Ambassador of the Grand Duchy of Luxembourg

2 With the support of

3 CHOPPY WATERS AHEAD? THE FUTURE OF FINANCIAL SERVICES IN EUROPE HE Pierre Gramegna, Minister of Finance, Grand Duchy of Luxembourg

4 CLIMATE CHANGE: A CALL TO ACTION FOR THE FINANCIAL SERVICES INDUSTRY

5 Panelists Experts: Anette Andersson, Portfolio Manager & ESG Investments Specialist, SEB Investment Management Annemarie Arens, General Manager, Luxembourg Finance Labeling Agency (LuxFLAG) Julie Becker, Head of International Primary Markets and Member of the Executive Committee, Luxembourg Stock Exchange (LuxSE) Christopher Knowles, Head of Infrastructure Funds and Climate Action, European Investment Bank Moderator: Tom Théobald, Deputy CEO, Luxembourg for Finance

6 THE EUROPEAN FUND INDUSTRY IN A CHANGING WORLD

7 Panelists Experts: Paul Carr, CEO & Conducting Officer, East Capital Asset Management Bob Kneip, Founder and Chairman, KNEIP Johan Lindberg, Director, Global Client Coverage, RBC Investor & Treasury Services Moderator: Anouk Agnes, Deputy Director General, Association of the Luxembourg Fund Industry (ALFI)

8 Worldwide investment funds Market share (%) by assets Brazil 3,7% Americas (excl. USA & Brazil & Canada) 0,4% Canada 3,0% Asia & Pacific 11,5% Luxembourg 9,0% USA 47,6% Global net assets bn Europe (excl. Lux) 24,3% Africa 0,4% Figures as at December 31, 2016 Source: Investment Company Institute (ICI)

9 European fund industry UCITS & AIFs UCITS Country Assets EUR millions Market share Country Assets EUR millions Market share Luxembourg Luxembourg Ireland Ireland Germany United Kingdom France France United Kingdom Switzerland Netherlands Germany Switzerland Sweden Sweden Italy Italy Spain Denmark Denmark Others Others Total Total Figures as at December 31, 2016 Source: EFAMA

10 Luxembourg fund industry... at a glance: 4130 investment funds compartments billion euros in assets under management Number 1 investment fund centre in Europe, Number 2 in the world Figures as at February 28, 2017 Source: CSSF

11 Luxembourg fund industry Global overview nr. of funds / fund units EUR millions Funds Fund units Net assets Figures as at February 28, 2017 Source: CSSF

12 Luxembourg fund industry 25 % in terms of net assets Market shares (%) of promoters 20,9 of Luxembourg domiciled funds by 20 17,2 country of origin in terms of assets under management 15 14,1 13,5 10 8,7 8,3 6,5 5 4,2 2,4 2,1 2,0 0 US GB DE CH IT FR BE NL LU DK Others Figures as at February 28, 2017 Source: CSSF

13 Luxembourg funds: the vehicle of choice cross-border distribution Luxembourg market share of foreign cross-border funds registered for sale Sweden, 62% France, 61% Poland, 95% Germany, 59% Switzerland, 58% Bahrain, 75% South Korea, 92% Japan, 51% Taiwan, 78% Hong Kong, 75% Colombia, 43% Peru, 45% Singapore, 68% Chile, 59%

14 Evolution of cross-border fund distribution Number of cross-border registrations Number of cross-border funds Luxembourg Ireland UK France Jersey Other Number of true x-border funds Source: Lipper LIM & PwC analysis as at December 31, 2016 (Poster PwC March 2017)

15 Luxembourg: a full fledged market infrastructure Stock exchange share classes listed 69 Custodians Financial Sectors Prof. (PSF) funds billion in AUM jobs 297 Distributors 1. Private Banks 2. Life Insurance 3. Platforms 391 Management Companies 152 Fund Administrators Auditors/ lawyers Regulator CSSF (including 3rd party ManCo) Source : CSSF, April 2017

16 LUXEMBOURG AS A PLATFORM FOR SWEDISH PRIVATE EQUITY FIRMS

17 LPEA Today LPEA - The Luxembourg Private Equity and Venture Capital Association 148 members from 25 founders in active members on 5 technical committees LPEA represents, promotes and protects the interests of the Luxembourg private equity and venture capital industry 68 PE Houses 80 Service Providers AFFILIATION TO Invest Europe * Rep. Group * Tax, Legal and Reg. Com. HCPF PROFIL LFF & close contacts with ALFI, LIMSA, LAFO, ILPA, EMPEA, LAVCA... 29

18 LPEA - Full Members Canna Luxembourg S.àr.l. Wert Investment Holdings S.àr.l.

19 Private Equity in Luxembourg + 400b AuM international hub for Cross Border Investments EN-FR-DE... multilingual jurisdiction The top 13 PE firms worldwide have operations in Luxembourg +25% 90% of EU PEfunds are domiciled in Luxembourg 6000 PE / VC professionals increase PE jobs vacancie state of the art Legal & Tax regulation s

20 Private Equity in Luxembourg LPEA - Your organisation TRENDS Increase of substance Increase of «small» funds ( 400 à 500 millions) Over 10 «billion $» funds (> 1B): Ardian, Astorg, PAI, Castik, EQT, Goldman Sachs 32 «private debt» funds increased 5 fold in last 3 years PE houses restrict their operations to fewer jurisdictions Managers US : «reverse solicitation» decrease

21 Recent Market Movers PRESENCE IN LUXEMBOURG Recent Market Movers Private equity looks to Luxembourg for access to single market. Financial Times 25/01/2017 Ares and ICG bet on Luxembourg post Brexit Financial News 20/02/2017 EQT creates one fund hub in Luxembourg EQT 4/04/2017

22 Panel Discussion Experts: Alain Farana, Counsel, Linklaters, Stockholm Peter Veldman, MD Head of Fund Management, EQT Luxembourg & the Netherlands Peter Franks, Group CFO, NREP, Stockholm Paul Junck, Managing Director, LPEA Moderator: Anja Grenner, Private Equity & Real Estate Leader, SGG Luxembourg

23 Luxembourg Luxembourg Facts and Figures 2. Structuring a PE and a VC Fund 3. NREP and EQT 2 Luxembourg structures in practice 4. The Luxembourg Reserved Alternative Investment Fund ( RAIF ) 5. Case Studies 6. The Luxembourg Operating Model 7. The Luxembourg Cluster Concept

24 Luxembourg - Facts and Figures 232 AIFMs authorized in Luxembourg Registered AIFM (below threshold) SICARS (risk capital funds) 154 Number of Central Administrators 69 Number of Custodians Estimated number of acquisition companies 35,000 1,623 SIFs (alternative funds) Number of employees in Lux. supervised establishments 45,500 All data as of RAIFs launched until end January 2017

25 Structuring a PE and VC fund in Luxembourg (I) Non regulated: Soparfi / AIF Regulated:SICAR Regulated:SIF Indirectly regulated: RAIF Corporate type Non- Corporate type Corporate type Non- Corporate type Corporate type Non- Corporate type SIF-RAIF SICAR- RAIF SCA SA SCS SCSp SCA SA SCS SCSp SCA SA SCS FCP* SCSp Corporate type Non- Corporate type SCA SA SCS FCP* SCSp Distribution Regimes: AIFMD compliance (with / without size exemption) EuVECA (AIFMD light ) Private Placement * FCP: SIF only

26 Case Study EQT Luxembourg structures in practice EQT Holdings AB Manager EQT Fund Management S.à r.l (AIFM) Manager Manager General Partner EQT Ventures SCS (GP) EQT Ventures SCSp (the Fund) Investors Sub Fund 1 EQT Sr Debt FCP-SIF (the Fund) Sub Fund 2 Sub Fund 3 Investors EQT Infra III SCS (GP) General Partner EQT Infra IIII SCSp (the Fund) Investment Platform Investment Platform Investment Platform Investment Platform Investment Platform Investments Investments Investments Global

27 Structuring a PE and VC fund in Luxembourg (II) QUALIFIED INVESTORS Transfer & invest Lux. Regulator (CSSF) GENERAL PARTNER Reasons: No CSSF Therefore time-to-market Corresponds to anglo-saxon model Higher flexibility SICAV-RAIF S.C.S.(p) TF 1 TF 2 TF 3 TF n Lux Acquisition Company (optional) Usually a Soparfi as S.à r.l. Central Administration Depositary Auditor external AIFM Evt. Investment Advisor PE / VC

28 The RAIF (1) What: ü An indirectly regulated AIF (via the AIFM) ü which uses a SIF s or SICAR s DNA ü without the burden of regulatory approval ü sheltered by the requirement to be managed by an authorised AIFM Why: ü To provide market players with a flexible, efficient and fast time-tomarket structure ü Building on the well-known SIF and SICAR structures ü Using the advantages of an authorised AIFM How: ü Regime creates a non-regulated AIF which benefits from the passport of the authorised AIFM to market its securities to qualified investors throughout the EU 40

29 The RAIF (2) Core features : Panel 1 Structuring & Governance ü Full AIFMD regime ü Real marketing passport without local law strings ü 125,000 minimum for well-informed investors ü Flexibility in structuring: FCP / SICAV / SICAF All legal forms Ring-fenced subfunds Multiple share classes Distribution Redemption rights at initiative of investors Possibility to function like a «SIF» or «SICAR»

30 Luxembourg 2016

31 The Luxembourg Operative Model General Partner Limited Partners Fund Portfolio Management Risk Management Compliance Valuation Investments Distribution Delegation Prestataires de service Acquisition Co (SPV) Administration, transfer agent, domiciliary agent Internal Audit Dépositaire Auditeur Investment Targets Investment Targets Avocat (indirect holding) (direct holding) Investment Advisor

32 Cluster Concept A well-oiled machinery of different competencies Specialized Private Equity back-office services (depositary, accounting, reporting, value-added services) Professional personnel (independent directors, other directors, consultants, management companies) Cluster of Private Equity competencies Existence of Specialized Private Equity tax consultants, lawyers and auditors The Luxembourg regulatory authority (CSSF) maintains the balance between control / supervision and openness and a sense for practicability and commerciality Presence of Middle/Back-Offices of many Top 20 PE Houses as well as headquarter to several local PE houses Use of Luxembourg for international PE acquisitions

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