Investment Officer

This Luxembourg edition of IO Talks hears about the latest developments in the realm of legislation around alternative investment solutions, and in particular European Long Term Investment Funds, or ELTIFs, and what they mean for Luxembourg. 

Rabobank said it took advantage of the sharp fall in prices of deeply subordinated bonds of European banks to buy additional cocos. BlueBay Asset Management is also betting on the risky bank bonds after Credit Suisse coco shareholders saw their money go up in smoke.

This Luxembourg edition of IO Talks is about developments in the realm of management companies, popularly referred to as “ManCos”, in Luxembourg. Mancos are an key component of the asset services ecosystem in the grand duchy.

Investment Officer spoke to a range of actors in Luxembourg asset services and alternative investments universum during Alfi’s 2023 European Asset Management conference. This playlist brings all interviews together. It includes, among others, Silke Bernard at Linklaters, Micaela Forelli at M&G, Denis Harty at Waystone Luxembourg and Emmanuel Gutton at Alfi.

At this week’s Alfi European Asset Management Conference in Luxembourg, Emmanuel Gutton, Alfi’s director of legal and tax, spoke to Investment Officer’s Raymond Frenken for this edition of IO Talks Luxembourg. The topic: European Long Term Investment Funds, a new type of investment fund known as Eltifs that opens the door to private equity and alternatives to a wider group of investors, in particular wealth management clients and the “retail plus” segment. Luxembourg is keen to become a European ánd global hub for these funds.

Crestbridge, a fund services provider for private equity and real estate funds, has been granted its depositary licence by Luxembourg’s financial services regulator, the Commission de Surveillance du Secteur Financier, CSSF.

The firm has already been licenced by the UK’s FCA to provide depositary service in the UK since 2001. Its Luxembourg licence enables it to further expand its capabilities in supporting a growing number of fund managers in Europe.

Switzerland’s financial markets supervisor is defending its decision to force a 16 billion Swiss franc (16 billion euro) write-off in Credit Suisse debt securities that were designed to function as a shock absorber in case of a major financial event.

Following Sunday’s announcement about the “shotgun wedding” between Credit Suisse and UBS, financial markets raised questions and possible legal challenges about the status of this particular type of debt, known as AT1 and as CoCos, or contingent convertibles. 

The European Union on Monday published the text of its updated regulation on long-term private investment funds, known as Eltif 2.0, in its Official Journal, clearing the final hurdle before its implementation from January next year.

The publication was expected following the adoption by the European Parliament in February. Luxembourg, as a leading investment funds hub in Europe, is keen to develop itself as an international hub for this new type of investment funds which will open up alternatives and private equity also to non-institutional investors.

Financial services provider Apex Group on Monday said it has appointed Tony Alfonso as global head of valuation, a newly created role that will be in charge of valuation advisory services.