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Alternative Investment Vehicles in Luxembourg: Which Way Forward?

In just a few decades, Luxembourg has become the largest fund centre in Europe and its second largest private banking centre. Its unique legal framework, combined with a concentration of expertise, makes it the place of choice for UCITS funds distribution.

Foreword

 

At the same time, Luxembourg has developed a strong track record in the alternative investments business starting from the creation of the Specialised Investment Fund in 2007 to the recently launched Reserved Alternative Investment Funds eligible for a EU passport.

The country is also recognised for its know-how in terms of securitisation vehicles and venture capital investment companies.

Will Luxembourg’s alternative tool box allow the country to take the lead and drive alternative investments in Europe as it already does in the UCITS market? To what extent does it offer a better alternative to other jurisdictions such as the UK or Ireland?

The report you are about to read has been built around a survey in which over 120 professionals from the Alternative Investment Fund Industry participated.

It aims to give an overview of the state of the alternative investment industry in Luxembourg along with key indicators for future growth.

It is split into five sections, each of which concerns a key point for the future of alternative investment in Luxembourg: distribution, new technologies, Luxembourg as the place of choice, what we can expect from the RAIF and the state of securitisation in Luxembourg.

Major players from the asset management sector, new technologies and securitisation world share their views on the present and future of the alternative investment sphere to give our readers a quick, yet comprehensive, view of what it will take for Luxembourg to become the place of choice in alternative investment in the coming years.


This survey has been performed in November 2016 by SGSS on 120 professionals from the Luxembourg financial marketplace

Respondents

66 %

replied that the advantage of RAIF is an easy set up and liquidation process

79 %

said that a large choice of vehicles is the main strength of AIFs in Luxembourg

53 %

said that Big Data is the new technology that will impact AIFs

Olivier Renault Country manager for Luxembourg Societe Generale Securities Services