Private Equity increasingly active in Luxembourg
The LPEA conference held in Paris this week attracted many of the important players from the Private Equity world.
In recent years, changes to the double taxation treaty between France and Luxembourg had impacted the use of Luxembourg investment vehicles owning French real estate, however following AIFMD implementation at a national level and the creation of the LP structure, the popularity of Luxembourg as a fund domicile has increased as evidenced by the growing AuM in all asset classes.
The conference discussed various industry issues including the growing use of debt funds as an alternative to banks within the EU and how Corporate loans issuances are being boosted thanks to various incentives such as the Fonds de Prêts à l’Economie in France. Additional influences discussed were the new regulated vehicles for debt funds across various jurisdictions in the EU, ECB investment policy towards ABS and SME’s, the EuroSystem label for ESNI, the Juncker investment plan at EU level and the improvement of capital requirements under Solvency II.
Source: The Point. Oct 2015