Private Equity Information Brief - July 2018

Dear Private Equity Information Brief reader,

Prior to a well-deserved summer break, we are delighted to provide you with our latest Private Equity Information Brief.

As Vincent Lebrun, Private Equity Industry Leader, explained at our most recent Private Equity Forum last month, very strong fundraising and the continued challenging deal environment are leading to an even higher volume of dry powder than the record amount seen at the end of 2017. More than half of this capital is concentrated with top managers*, who are constantly diversifying their portfolios.

On 25 May, the General Data Protection Regulation (“GDPR”) entered into force, and although private equity structures do not process data as a core business, data processing is part of their activity. In this month’s newsletter, our GDPR expert, Frédéric Vonner, gives you an overview of the main categories affected by the collection, use and storage of personal data. Other topics included in this issue are VAT grouping, which will soon be possible in Luxembourg; the new double tax treaty between Luxembourg and France and its impact on private equity; and how environmental, social and governance factors are impacting on the private equity industry.

We hope you enjoy reading this Private Equity Information Brief.

As always, do not hesitate to contact our Private Equity team if you wish to discuss any topic in more detail or if you have any questions.

Happy reading!

The Luxembourg Private Equity Team

*Source: Preqin Quarterly Private Equity Update Q1 2018

Hot topics for Private Equity for July 2018

GDPR and private equity

On 25 May 2018, the General Data Protection Regulation ("GDPR") entered into applicati0n, unleashing numerous questions about the practical impacts of the reform. The GDPR is a real “mind switcher”, forcing companies and entities that process personal data to rethink all their methods and daily practices. [...]

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Increasing operational due diligence on PE fund managers

According to Invest Europe’s latest data for 2017, European private equity fundraising saw a tremendous increase, growing by almost 40% to the highest level recorded since 2008. This clearly demonstrates that it is an asset class in high demand. [...] 

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VAT grouping soon possible in Luxembourg

In March 2018, the Luxembourg Finance Minister announced the introduction of VAT grouping as a quick reaction to the recent Court of Justice of the European Union cases on cost-sharing arrangements (independent groups of persons). The legislation is expected to be enacted this summer. [...]

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New double tax treaty between Luxembourg and France: what is the impact for private equity investments?

On 20 March 2018, the Luxembourg and French Governments signed a new double tax treaty (DTT), together with an accompanying protocol.   [...]

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Anti Tax Avoidance Directive - Luxembourg publishes bill

The prominent EU Anti Tax Avoidance Directive ("ATAD 1") was adopted at EU level in July 2016. EU Member States must meet a 31 December 2018 deadline to have its provisions transposed into their domestic tax legislation. [...]

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Chasing "inclusive growth": How environmental, social and governance (ESG) factors are impacting the private equity industry

Businesses operate within a multifaceted ecosystem comprising stakeholders that are increasingly demanding of accountability and transparency. More and more firms are becoming aware of the fact that business needs to transform in order to suit the needs of the changing world.  [...]

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EU rules on mandatory disclosure for intermediaries (DAC6) formally adopted

On 25 May 2018, the Economic and Financial Affairs Council (ECOFIN) formally adopted Council Directive (EU) 2018/822 amending Directive 2011/16/EU as regards mandatory automatic exchange of information in the field of taxation in relation to reportable cross-border arrangements (commonly referred as "DAC6").[...]

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New transfer-pricing disclosure requirements in 2017 tax returns

Luxembourg’s 2017 corporate income tax returns include new requirements on transfer pricing, whereby it must be stated whether the company was engaged in inter-company transactions.  [...]

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PwC’s Academy - a complete set of training services to help you develop your people’s knowledge and skills

Nicolas Lefèvre - Partner

(+352) 494848 2296

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(+352) 494848 4005

Upcoming PE Academy training courses

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Current number of Lux LPs and RAIFs created
  • RAIFs - 396* (as at June 2018)
  • SCSps - 2,015 active in Luxemburg at the end of June 2018

 Source: RCSL - Statistiques de dépôt

*only at 11.06.2018 active FIAR are taken into consideration (previous liquidations and radiations are not included)
Source: RCSL official list of FIAR, Status at 01.06.2018, based on "Date de constatation de la création du FIAR" 

Contact us

Vincent Lebrun

Alternatives Leader, Tax Partner, PwC Luxembourg

Tel: +352 49 48 48 3193

Vincent Ball

Clients and Markets, Alternatives COO/CFO Leader and Assurance Partner, PwC Luxembourg

Tel: +352 49 48 48 2254

Kai Braun

Alternatives Advisory Partner, PwC Luxembourg

Tel: +352 49 48 48 2085

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