Luxembourg: a prime location for structuring private equity investments and private equity funds
Thanks to its efficient and flexible tax and legal environment, Luxembourg has become the preeminent jurisdiction for structuring PE funds and deals. In a survey conducted by the European Venture Capital Association ("EVCA"), Luxembourg was ranked among the most favourable jurisdictions. Historically, Luxembourg’s PE expertise was related to the "Société de participation financière" ("SOPARFI") as an acquisition vehicle in PE deals, allowing tax structuring, legal implementation, domiciliation and administration. However, it was the adoption in 2004 of the law on "Sociétés d’Investissement en Capital à Risque" ("SICARs") that really spurred the development of Luxembourg into a major hub for PE. According to the "Commission de Surveillance du Secteur Financier" ("CSSF"), i.e. the Luxembourg financial regulator, the number of SICARs registered in June 2013 stood at 276. The launch of Specialised Investment Funds ("SIFs") in 2007 was a further step along the way to putting Luxembourg firmly on the map as the European jurisdiction for PE funds and structuring. CSSF figures for June 2013 counted 1,534 SIFs.
The introduction of both these vehicles, coupled with the fact that it has one of the most extensive double tax treaties network, shows that Luxembourg is highly committed to this activity in both the public and private sectors. We believe that this coherence is vital as the expertise of all players and service providers is needed to support the Grand Duchy as a PE cluster.
Our services: from fund set-up to exit
PwC Luxembourg is the largest professional services firm in Luxembourg with more than 2,200 people employed from 57 different countries. It provides audit, tax and advisory services including management consulting, transaction, financing and regulatory advice to a wide variety of clients from local and middle market entrepreneurs to large multinational companies operating from Luxembourg and the Greater Region.
PwC Luxembourg has developed its private equity and venture capital expertise through the provision of dedicated specialists across varied business areas. In Luxembourg, more than 140 multilingual team members can assist you in all aspects of your business: from Fund Structuring transaction support and tax structuring to accounting and audits. PwC Luxembourg is the local market leader in terms of the audit of private equity funds and in international transaction structuring. Our local leadership is further strengthened by the global market leadership position of our international network in this industry.
Our dedicated Luxembourg team consisting of professionals with passion for their industry offers a full range of services during the lifetime of the investment: