How Brexit just tripled the interest in Luxembourg’s Private Equity scene
Although Luxembourg was already on the map with Private Equity, it is really since Brexit plans started to come together that more and more PE houses have developed dedicated offices, grown teams, and outsourcing models together with third parties on the ground.
Historically, these businesses relied on a UK or partly UK-based workforce. Since Brexit, especially for the funds whose main investors are in Europe, the link to Europe via the UK is not strong enough to continue as before. These entrepreneurial businesses seek out the most driven and dynamic candidates in the market, and for those with a strong academic background, can offer opportunities to work with leading investment teams, usually in other locations.
We have been inundated with requests from Private Equity companies since Brexit became more real in 2017, and through a deep understanding of their niche organisational structures, we are able to closely advise our contacts on the types of hires they should place into each role, and open doors to specific candidates that might otherwise not be looking for a move.
Private Equity is about people performance like no other asset class
Whereas other alternative asset classes typically have longer hold periods, more varied ways to generate return, or more factors to take into account when calculating the success of an investment, PE is more binary. As Investors are so focused on the last investment as a sign of value, this filters down into every last decision, and performance at every level is key. This makes hiring for Private Equity, and in fact working in a PE environment, a truly unique experience that really is not suited to every type of candidate.
Niche businesses that build around core assets – their people
Despite technology, these primarily people-based businesses still run on the quality and calibre of their most important asset; their staff. While developing sound systems and processes will always be important, in these tightly run organisations, it is the staff that make or break the firm. There is always a challenge to undertake, and progression is always available for those who perform.
𝐏𝐚𝐫𝐚𝐥𝐞𝐠𝐚𝐥 – 𝐆𝐥𝐨𝐛𝐚𝐥 𝐈𝐧𝐯𝐞𝐬𝐭𝐦𝐞𝐧𝐭 𝐌𝐚𝐧𝐚𝐠𝐞𝐫 – 𝐋𝐮𝐱𝐞𝐦𝐛𝐨𝐮𝐫𝐠 𝐂𝐢𝐭𝐲
- Full Time
Finance Manager – PERE
- Full Time
Fund Controller & Accounting Manager | Real Estate
- Full Time
Compliance Associate – AIFM
- Full Time
Popular structures and tools for Private Equity
Luxembourg has been growing rapidly in popularity with investors into private capital funds over the last 10 years.
Where investors turn, funds follow, and this has certainly been the case as we have seen more and more funds, and not just downstream entities setting up shop in Luxembourg.
The popularity of the structures, such as RIAFs, SIFs, and SICARs, and the flexibility of the legal and tax framework have solidified Luxembourg’s name as a jurisdiction of choice for Private Equity.
All eyes are now on ESMA as the Private Equity industry waits to see if they will release new guidelines in the future that will require even more of the front-end work to also be located within an EU jurisdiction.
They understand our business
“Funds Talent understand our business and therefore the individuals that we want to attract. They have played a fundamental part in building our business, sourcing the majority of the senior management team over a number of years, starting from our time as a new participant in the Luxembourg market to where we are now, a Luxembourg office of 100+ team members.”Managing Director, Niche Alternative Funds Business