Industry news / 12 June 2019
Crestbridge cites post-Brexit opportunities with Luxembourg ManCo branch in London
Crestbridge has established a branch of its Luxembourg Management Company (ManCo) in London as the business seeks to cement ties between the UK and Luxembourg and secure new opportunities post-Brexit.
The innovative move comes after Crestbridge received formal regulatory approval to establish a branch of its EU-based ManCo, the ‘Crestbridge Management Company SA’, in London.
Operating out of Crestbridge’s existing London office in Mayfair, the branch is intended to act as a convenient point of contact for London fund managers making use of or exploring the potential offered by an EU ManCo as part of their European market access strategy.
Crestbridge established its ManCo in Luxembourg in 2011 and was one of the first firms to establish an AIFM in early 2014, providing a third-party management company solution for managers of both UCITS and alternative investment funds with pan-European distribution needs.
Pointing to Brexit as a key driver behind rising interest in ManCo platforms in Luxembourg, Daniela Klasén-Martin, Group Head of Management Company Services at Crestbridge, said:
“Our ManCo in Luxembourg was originally launched as a means for managers to navigate the AIFMD, particularly in relation to its governance and oversight requirements. The environment has moved on significantly, however, and we now see managers increasingly being driven towards the ManCo platform by Brexit. Irrespective of when and how the UK exits the EU, it is almost inevitable that the position on cross border passporting of financial products between the UK and the EU will change, and many UK managers will ultimately need to identify alternative arrangements in the longer-term.
“Through our network of international offices, our view is that we are in a strong position to provide solutions to fund managers regardless of how Brexit pans out, but we certainly see the Luxembourg ManCo specifically and greater cooperation between our London and Luxembourg offices more widely as being absolutely central to supporting managers with their future structuring needs.”
Paul Windsor, Managing Director of Crestbridge’s London office and the Branch Manager added:
“Given London’s pre-eminence in Europe as an investment management centre and Luxembourg’s dominance as a fund domicile and servicing and distribution hub, it makes absolute sense to draw on those strengths to pave the way for greater cooperation post-Brexit. Through our new ManCo branch in London, our intention is to help the rising number of managers looking for a solution to the Brexit uncertainty understand the ManCo platform and the Luxembourg environment by offering a personable, easy access face-to-face service.”
The branch adds to Crestbridge’s already established Management company, FCA regulatory and UK AIFM services.