Private Equity Information Brief - November 2018

Dear Private Equity Information Brief reader,

It took only nine months for 2018 to become a record year for the M&A industry, with mega-deals on the rise. More money has been secured with fewer funds. This trend is not new, but accelerate in Q3 2018. The largest fund closed in this quarter was Carlyle’s Carlyle Partner VII, at $18.5bn.

The Luxembourg Government officially launched the Luxembourg Space Agency in mid-September. This initiative fosters efforts to attract companies working in the space resources field and marks an important step for the country in professionalising its approach to this community. A fund, the Luxembourg Space Fund, aims to complete the initiative by providing capital to space companies with groundbreaking ideas and technology. We can confirm that we are seeing more and more clients becoming active in this industry and choosing Luxembourg’s ecosystem for their activities.

On 23 August 2018, the CSSF published Circular 18/698, which is particularly important for AIFMs as it includes written provisions for AIFM licensing requirements for the first time. Benjamin Gauthier and Max von Frantzius outline what the CSSF Circular means for private equity fund managers in Luxembourg. Meanwhile, David Roach gives an update on BEPS and when Luxembourg tax treaties will change. You will also find, among other things, insights on changes in the VAT landscape, information on cryptocurrencies and Latin America - an interesting market for both GPs and LPs interested in overseas investments.

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


Hot topics for Private Equity for November 2018


What does CSSF Circular 18/698 mean for PE fund managers in Luxembourg?

On 23 August 2018, the CSSF issued a new circular, Circular 18/698, which outlines (i) the authorisation and organisation of investment fund managers (IFMs) incorporated under Luxembourg Law, and (ii) specific provisions on the fight against money laundering and terrorist financing applicable to IFMs and entities carrying out the activity of a registrar agent. [...]

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BEPS - When are Luxembourg's tax treaties going to change?

One of the main outcomes of the OECD/G20 Base Erosion and Profit Shifting (BEPS) Project, agreed three years ago, was that the global network of tax treaties needed revamping. The aim was that tax treaties, while continuing to encourage economic development by preventing double taxation, should cease to be tools that were handy for aggressive tax planning, and instead act clearly to prevent such activity. [...] 

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Summer 2018 - Important changes in the VAT landscape

With the implementation of VAT grouping and transfer-pricing provisions in VAT legislation, summer 2018 was an important period for Luxembourg VAT. [...]

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Luxembourg tax circulars on cryptocurrencies: a careful and conservative approach

The G20 summit held in Buenos Aires in March 2018 did not end with clear and precise guidance on how to regulate cryptocurrencies. [...]

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Latin America – a capital-intense market that offers a vast amount of capital-like opportunities for GPs and an eager base of LPs searching for regional and overseas investments

Latin American non-financial corporations’ debt-securities issues and amounts outstanding by Q2 2018 are estimated at USD 779 billion, the vast majority of which are long-term debt issuances, with 41% issued internationally. [...]

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Is the past PE governance model sustainable in the current business environment?

Private Equity has been a strong performing alternative asset class during the last decade with investors in search of yield. The recent fundraisings undertaken in record time attest to this statement. [...]

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Contacts

Nicolas Lefèvre - Partner

nicolas.lefevre@lu.pwc.com

(+352) 494848 2296

Carole Houpert - Director

carole.houpert-sieger@lu.pwc.com

(+352) 494848 4005

Current number of Lux LPs and RAIFs created
  • RAIFs - 463*
  • SCSps - 2,260 SCSp active in Luxemburg at the End of September, 2018.

*only at 14.09.2018 active FIAR are taken into consideration (previous liquidations and radiations are not included)

Source: RCSL official list of FIAR, Status at 14.09.2018, based on "Date de constatation de la création du FIAR" 

Contact us

Vincent Lebrun
Private Equity Leader, PwC Luxembourg
Tel: +352 49 48 48 3193
Email

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