Number & size of Lux PE funds shoots up: Deloitte


Audrey Legrand of Deloitte speaks during the Association of the Luxembourg Fund Industry’s alternative funds conference, 26 November 2019. Staff photo 

Regulated and unregulated Luxembourg private equity funds had €148bn in assets under management, as of September 2019, an increase of 19% over September 2018.

That was the topline finding of the “Is sky the limit? Luxembourg Private Equity & Venture Capital Investment Fund Survey” produced by the consulting firm Deloitte and distributed during the Association of the Luxembourg Fund Industry’s Private Equity and Real Estate conference on Tuesday.

There is a trend toward larger private equity funds in Luxembourg, Audrey Legrand, tax director at Deloitte, said at the conference.

Average fund size increased by 50% to €200.6m and the number of funds worth more than €1bn doubled to 3%, while funds managing less than €100m fell from 70% to 69% of the private equity total, according to the report.

Reserved alternative investment funds (a type of faster-to-launch structure introduced in 2016) and unregulated limited partnerships represented 51% of all Luxembourg private equity funds, up by 20% compared to the previous year, Legrand told attendees.

The number of US fund houses rose from 7% to 8% of total Luxemburg private equity funds, Legrand stated.

Most private equity outfits in Luxembourg already employ compliance and risk professionals here, Deloitte found. Legrand reckoned that risk and compliance hiring would “probably continue” locally.