Stéphane Pesch, CEO of the Luxembourg Private Equity & Venture Capital Association (LPEA). Library picture: Nader Ghavami

Stéphane Pesch, CEO of the Luxembourg Private Equity & Venture Capital Association (LPEA). Library picture: Nader Ghavami

Stéphane Pesch, CEO of the Luxembourg Private Equity & Venture Capital Association (LPEA), gives his initial reactions to the results of Sunday’s national elections.

On a purely political level, , CEO of the LPEA trade group, says the results of the elections were “a bit of a surprise” and that some “extreme topics in the end did not catch as much traction as expected.”

While it’s clear it will be a coalition of two parties, for Pesch, “it’s really more about having the right sparring partners in order to help the Luxembourgish financial hub to remain, and become, if necessary, as competitive as possible.”

As other financial institutions have similarly stated, the LPEA will also stay close to the ministries and public authorities to be aligned to ensure the sector remains as attractive as possible. Pesch adds that Luxembourg is well recognised as a private equity hub and efficient hub for European fundraising.

“That’s the goal we need to focus our efforts on: the best timing concerning the setups... when we have good structures, but we’ve heard of great features which exist in other countries or hubs, so to potentially adapt those into our own laws and be at the forefront of what can be combined around that strength.”

It’s having the best in class of finance, operations, excellence, and also doers. In the end, that will make the big difference.

Stéphane PeschCEOLuxembourg Private Equity & Venture Capital Association (LPEA)

Stability is still a part of the toolbox. But while buzzwords might fly around, he hopes for concrete action, without foregoing innovation. “It’s having the best in class of finance, operations, excellence, and also doers. In the end, that will make the big difference.”

Pesch doesn’t doubt the government’s awareness of the important role the finance sector plays in the grand duchy, but he emphasises the need “to have constant exchange, have their ear. If we have suggestions or things we have observed, that we are able to bring those up and then to define, together, if feasible, what we can realistically implement.”

For him, having the “interests of the state and financial sector” be “absolutely aligned” is important, which he sees happening through a “constructive path, with collective intelligence” to preserve that.

The LPEA, which counted 413 members as of 31 December 2022 (+28% year-on-year) and reached revenues of €1.310m the same year, added of this year.