TLDR:
Key Points:
- Luxembourg hosted a private equity seminar in Tokyo on June 20, 2024
- Luxembourg is a global financial hub with strengths in private equity and alternative investment funds
In a recent seminar hosted by the Luxembourg Private Equity Association (LPEA) in Tokyo, key takeaways were presented regarding Luxembourg’s position as a global financial center. Despite its small size, Luxembourg boasts a diverse linguistic landscape and a population that includes a high percentage of expats. Notably, Luxembourg provides seamless access to the EU market and is a dominant force in private equity, hosting operations of top global fund managers and managing trillions of dollars in assets.
Luxembourg has emerged as a preferred domicile for private equity funds, with substantial assets under management in this sector. The country’s tax efficiency, diverse legal structures, political and economic stability, and skilled workforce make it an attractive location for global private equity firms and investors. Additionally, Luxembourg has seen a growing presence of Japanese investors and financial institutions, drawn to its expertise and strategic location within the EU.
The article also highlights the popularity of the Cayman-Luxembourg parallel fund structure for fund managers seeking global investors while maximizing tax efficiency and regulatory compliance. This structure involves setting up funds in both the Cayman Islands and Luxembourg, allowing for access to offshore and onshore investor bases while ensuring consistency in portfolio performance.
Overall, Luxembourg’s reputation as a global hub for private equity and alternative funds, coupled with its attractive tax structures and regulatory environment, continues to position the country as a key player in the financial industry.
