A survey recently carried out by the Luxembourg Private Equity and Venture Capital Association (LPEA) reveals a sector undergoing significant expansion and change from regulatory developments, new legislation and tax changes.
“Luxembourg is reinforcing its position as an alternative fund location,” was one of the main conclusions of an LPEA survey of private equity firms established in the grandy duchy. “Its large offer of different vehicles (Raifs, SLPs etc.) attracts various types of PE (private equity) houses.”
The survey of 55 general partners, taken between January and March 2018, also revealed that, “Despite BEPS and AIFM regulations…Luxembourg continues to have a stable political and tax environment and is perceived as a significant hub…and the success of competitive vehicles such as Raifs and SCSps has made Luxembourg flexible and it is now welcoming small to medium sized players and is no longer reserved to big players.”
As in other sectors of activity, training in order to stay ahead of the game, is becoming important. “There are qualified people with industry knowledge, but further technical improvement through training would be appreciated.”
Going forward, the survey indicates that, keeping control of pricing models via more value-added services is important in order that service providers can remain competitive.