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 in June 2011 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 February 2012 stood at 276. The launch of Specialised Investment Funds ("SIFs") in 2007 was a further step along the way to bringing European jurisdiction for PE funds and structuring to the center stage. CSSF figures for February 2012 counted 1,402 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 commited 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 the funding until the exit stages
PwC Luxembourg is a multidisciplinary audit, tax and advisory firm which is in a leadership position in the Luxembourg market for many years. It has in this time become an important member of the Grand Duchy’s business community, employing nearly 2000 and priding itself on being an innovator and driver of growth.
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 hundred multilingual team members are able to assist in all aspects within the industry: from Fund Structuring transaction support, tax structuring, accounting and audits. PwC Luxembourg is the local market leader in terms of the audit of private equity funds and in international transaction structuring. This 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: