Private Equity Information Brief

Private Equity Information Brief - October 2011

Welcome to the seventh edition of PwC Luxembourg’s Private Equity Information Brief.

	Content
		Hot topics for Private Equity for September 2011 Luxembourg Transfer Pricing Circulars - Did you know that... Regulation 2011/8 of the Central Bank of Luxembourg: New monthly and quarterly reporting requirements for Luxembourg financial companies The modernisation of the Accounting Law: significant implications for the PE industry Minimum corporate income tax – practical guidance Dutch horizontal tax unity and its potential impact on Luxembourg tax unity New bill on SIF regime A blend of carbon and microfinance: what’s up for PE House? CCCTB: Common Consolidated Corporate Tax Base: update Request for preliminary ruling referred to the ECJ on compliance with EU rules of the Luxembourg Net Wealth Tax requirements UK Tax Treaties Anti-Avoidance Opinion on the VAT treatment applicable to transfers of non-performing receivables Update on the Double Tax Treaties PwC Academy’s Private Equity trainings offer

PwC Luxembourg experienced a substantial increase in PE market activity in 2011 to date. Deal flow, whilst volatile, increased significantly in both deal volume and value, creating stimulus for future fund-raisings. The majority of the deals were buyouts or add-ons, not recaps which dominated the market post-Lehman. Transactions have become more complex and diverse in structure, repatriation, and types of finance used. Luxembourg remains a leading jurisdiction for facilitating the requirements of the PE industry and its diverse stakeholders.

Significant fund closings over the past 8 months indicate that the industry is positive. Fund raising conditions remain difficult and challenging with LPs much more active and prescriptive in negotiating terms and conditions prior to investment. Together with numerous new legislative and regulatory requirements, these pressures have resulted in PE funds experiencing an increased resource and administrative burden, and a need to further focus on risk management and internal reporting and procedures.

PwC Luxembourg has also experienced an increased number of regulated PE fund vehicles being set up in Luxembourg for specialist investment or specific investor preferences. Whilst Luxembourg is not yet one of the main domiciles for the larger buy-out funds, there is more interest in locating PE funds in Luxembourg. As a response, the Luxembourg authorities are in the process of developing the law to introduce a regulated and non-regulated legal and tax framework for true partnerships.

Moving into the most active quarter of the PE calendar we look forward to continuing to work with you in this busy and challenging period.

Vincent Lebrun
Private Equity Industry Leader
PwC Luxembourg

Welcome to the seventh edition of PwC Luxembourg’s Private Equity Information Brief.

Hot topics for Private Equity for September 2011