“With the industry showing growth over the past number of years, the creation of an association dedicated to private equity and venture capital became necessary for Luxembourg,” says Hans-Jürgen Schmitz of Mangrove Capital Partners, and president and founding member of the Luxembourg Private Equity and Venture Capital Association (LPEA), which was inaugurated on 1 February. Creating the association was an entirely logical step as Luxembourg has a financial sector which is favourable to private equity transactions, and over the past number of years has emerged as a popular choice for major players in the field of private equity, with a significant proportion of the those players establishing operations in this country.

It is also telling that many of those active in private equity, be they banks, fund administrators, law offices or consultants have created teams dedicated solely to private equity, while the Grand Duchy is viewed very favourably as a destination for anticipated expansion. Moreover, the creation of the LPEA is in line with the government’s aim to boost the diversification of the financial sector, and the Luxembourgish economy as a whole.

Although the LPEA is a non-profit organisation, the advantages it will bring should provide benefits on several levels: representing and promoting the interests of those involved in the industry who are based in Luxembourg, but also supporting private and public initiatives in the industry. “We want to reinforce the attractiveness, competitiveness and efficiency of Luxembourg as an international hub for private equity services,” states Schmitz, “in terms of legal expertise, economic expertise and regulation, and private equity services as a whole.” Similarly, the LPEA will represent Luxembourg’s private equity interests on the international scene, particularly the European Private Equity and Venture Capital Association (EVCA). Full membership is available to any person or company involved in private equity who ticks the necessary criteria, while associate membership is available to those involved in other relevant professions. “The necessity for this association is highlighted by the very favourable reaction from the private equity industry,” says Schmitz, “in fact, 25 players in the industry and providers of private equity services submitted their credentials to become founder members.” The executive committee is made up of Alain Kinsch of Ernst & Young, Emanuela Brero (CVC Capital Partners), Guy Harles (Arendt & Medernach), Marc Faber (BIP Investment Partners) and Gilles Dusemon (Loyens & Loeff).