Insights

News / 23 November 2014

Crestbridge reports significant growth in its Luxembourg operations

From the left, Gregoire Mure, Gabriel Berdugo, Sanjeev Jewootah, Daniela Klasén-Martin, Ludivine Nicolai, Vincent Croonen, Yves Cheret, Pavel Visotchi.

As at 1 November 2014, Crestbridge Luxembourg had a combined AUM and AUA of EUR2.75bn, citing a particular rise in the number of funds using its third-party management company (ManCo) services to 14, with an AUM of EUR1.45bn. At the same time, the firm has also grown the value of the entities its Corporate Services team administers principally for alternative fund managers to EUR1.3bn, on behalf of more than 36 client entities. 

Already licenced as a UCITS ManCo, Crestbridge became one of the first firms to be granted licensing by the Luxembourg regulator (CSSF) to become an AIFM (Alternative Investment Fund Manager) providing ManCo services to alternative investment funds earlier this year. Crestbridge's AIFM licences cover all strategies (excluding commodities). This means that fund managers using Crestbridge’s ManCo benefit from its AIFM status and therefore passporting rights for their funds across the Eurozone.

Further bolstering Crestbridge’s ManCo capabilities is the appointment by the CSSF of Christopher Bennett, Head of Real Estate at Crestbridge, as a Conducting Officer for portfolio management for ‘non-financial’ alternative funds, including real estate, private equity and infrastructure funds. The appointment enables Crestbridge to satisfy the mandatory requirement under the AIFMD to have demonstrable substance in both portfolio and risk management functions within a ManCo.

The overall framework it now has in place enables Crestbridge to support managers through its ManCo service for a broad range of strategies, encompassing both UCITS and AIFs.

In a successful year, Crestbridge’s Luxembourg office has seen its headcount grow by around 50%, including a number of strategic senior hires, whilst it also hosted a panel debate to launch key research, undertaken by IFI Global, into the initial impact of AIFMD in October.

Daniela Klasén-Martin, Managing Director and Country Head of Crestbridge Luxembourg said:

“These figures represent significant growth for our Luxembourg office and reflect our objective to position Crestbridge as a leading independent ManCo and a superior service provider in the Luxembourg market. We have focused this year on establishing a high quality framework to meet the needs of managers. Being granted licenses for a broad range of asset classes under the AIFMD and appointing a Conducting Officer for portfolio management puts us at a real competitive advantage”

“Recruitment has comprised risk managers for the ManCo, legal and accounting professionals into the Corporate Services team and Chartered Surveyor Gren Carr-Jones to provide a director services offering.  We have also rolled out a comprehensive accounting and risk management platform to ensure strong and flexible reporting capabilities.”

“Our success as a ManCo is particularly positive for us. It is proving attractive to small and medium size managers both in and outside of Europe, including non-EU managers for whom appointing a third party ManCo is more cost effective and quicker to market than it would be to set up an operation of their own. We are also finding that using a ManCo can be a strategic decision for managers who would prefer to focus on their own specific expertise rather than allocating resources on ancillary activities.”

 

For further information on ManCo Services, please contact Daniela Klasén-Martin

For further information on Corporate Services in Luxembourg, please contact Yves Cheret