10 reasons to choose Luxembourg as a hub for AIFs or AIFMs - Alfi

Luxembourg, your gateway to Europe and beyond
Gateway to Europe: establishing an AIFM in
Luxembourg means benefiting from the marketing passport
so as to grow your business with EU
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professional investors from July 2013 for your EU AIFs
The leading pan-European and global distribution platform:
- EUR 2.5 trillion fund assets under management (AUM)
- 75% of the world’s cross-border funds are
Luxembourg funds
A renowned brand:
- Luxembourg UCITS are distributed in more than
80 countries, including the most important markets
in Asia, the Middle East and Latin America
- Longstanding trusted relationship between the
Luxembourg regulator and regulators from
distribution countries
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272 venture capital investment companies (SICAR)
Benefiting from a unique toolkit of investment products
Nearly 1,500 specialised investment funds (SIF)
32 regulated Securitisation vehicles
New onshore Luxembourg limited partnership regime,
offering equivalent features to Anglo-Saxon limited
partnerships while benefiting from the EU AIFM passport
as of July 2013
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Leveraging on a favourable tax environment
Competitive tax and social security regime
Outstanding network of double tax treaties: tax
treaties available with all key target jurisdictions of PE,
RE and HF players
Numerous possibilities to optimise VAT treatment of
management services
Surfing the steady growth in alternative
investment sectors over the past decade
Real Estate, Private Equity and Hedge Funds have an
accelerating presence in Luxembourg, now representing
20% of total fund AUM
The number of Luxembourg Real Estate Fund Units has
grown from 13 in 2003 to 244 in 2012
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The number of Luxembourg Private Equity Fund Units
has grown from 39 in 2003 to 129 in 2012
In addition, as at March 2013, there are 272 venture
capital investment companies (société d’investissement en
capital à risque, SICAR) in Luxembourg
For Luxembourg Hedge Fund Units administered in
Luxembourg, the number has grown from 46 in 2003
to 519 in 2012. For Fund of Hedge Funds Units administered
in Luxembourg, the number has grown from
319 in 2003 to 1,176 in 2012
A jurisdiction already trusted by the major players in
PE, RE and Hedge: 9 of the top 10 PE houses already
present in Luxembourg, 8 of the top 10 Hedge Fund
Service providers already present in Luxembourg, 14 of
the top 15 Real Estate Fund Managers already present
in Luxembourg
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Leveraging existing UCITS experience for operating an AIFM
Operational requirements imposed on AIFMs are similar
to those applicable to existing UCITS management
companies and service providers, notably in terms of
substance and operating conditions.
Dual licensed AIFMs allowed to manage both UCITS
and AIFs; key advantages are cost efficiency and
streamlining of operations.
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Very active investment fund industry association (ALFI)
Enjoying a stable and trusted jurisdiction
Founding EU Member State with sound public finances
and fiscal stability
AAA credit rating
Political ambition and support to establish Luxembourg as
a leading alternative fund centre
Excellent public and cultural infrastructure, social
services and low crime rate
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To accommodate various legacy structures and limit
changes required, the Luxembourg legislation provides
for three key AIFM structuring options:
- Self-managed AIF/AIFM
- Existing Management Company becomes the AIFM
- A new external AIFM is established or appointed
Structuring options
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351 management companies
Benefiting from established experience in servicing
alternative assets
More than 25 years of experience in fund administration,
custody services, regulatory, financial and tax reporting,
delegation arrangements, multi-class funds, global distribution
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66 depositary banks with worldwide sub-custodian networks
New license available to provide depositary services for
alternative sectors including RE and PE
Local presence of all major global players in fund administration
with proven track record in all types of alternative asset
State-of-the-art technology and expertise to accommodate
new products and ever widening distribution of funds
Relying on a pragmatic legal and supervisory framework
Flexible and understandable 8clear legal framework for
structuring and operating alternative investment funds
Proactive, accessible and multilingual regulator
(application files and all communication accepted in
English, French and German, e-filing) ensuring
efficient approval process
Established relationship between the government, the
regulator and the alternative investment industries in
order to design an efficient and first-class operating
framework in the alternative sector
Advantages of an international multilingual environment
44,000 professionals employed in regulated financial
services companies
141 banks from 23 countries
More than 300 regulated financial services companies
Central location in Europe attracting a highly educated
pool of labour forces from neighbouring countries, the
rest of the EU and the world: multitude of nationalities
(176) and languages spoken in Luxembourg