Asset Servicing

Luxembourg-based Alter Domus, one of the world’s biggest asset services firms, has secured a new strategic investment from London-based private equity firm Cinven. Alter Domus said the transaction will increase its value to 4.9 billion euros, which indicates that Cinven agreed to pay the firm’s existing shareholders - its founders and Permira - more than half of that amount. 

Brussels has opted to abandon the proposed establishment of a ‘European passport’ for depositary banks. While initially touted as an innovative concept, the idea was fraught with potential market challenges and risked undermining the work of supervisors. The alternative approach that has emerged now is being hailed as a success by Luxembourg banking association ABBL. 

The market for Venture Capital (VC) experienced a challenging year. Rising interest rates and general uncertainty around valuations made it hard for funds to raise capital. In addition, the market is strongly segmented and therefore often not attractive for large investors. Despite these obstacles, there are ways to utilise the potential that is hidden here – with the help of experienced partners. 

Major domestic Luxembourg bank Spuerkeess will move the majority of its fund portfolio to Euroclear FundsPlace as part of its effort to streamline and cut costs in its fund business, the bank has announced this week.

The bank said it “has decided to move away from transfer agents and centralise the distribution and execution services of its funds.”

Euroclear’s funds platform has started to manage the lion’s share of the Spuerkeess portfolio  and “collect trailer fees on external custodians” as well.

In a significant leadership change, Robbert Booij has been announced as the new Chief Executive Officer of Eurex Frankfurt AG, taking the reins from Michael Peters in July 2024. Booij, currently the CEO Europe at ABN AMRO Clearing Bank N.V., will join the Executive Board of Eurex Frankfurt AG from 1 May 2024.

This week’s overview of transfers, appointments, promotions and other people news includes updates from Fidelity, Alma LED Luxembourg, Fundcraft and Better Finance.

Christine Baalham and Tom Record

Christine Baalham and Tom Record have been appointed as co-portfolio managers in the global equity team at Fidelity International. Veteran portfolio manager Jeremy Podger will transition to a senior advisory role in March 2024. 

Atoz Services, described as the largest tax advisory firm in Luxembourg outside the Big 4, announced on 29 January its acquisition of former rival Fund Solutions, a money-losing Luxembourg firm offering outsourced fund administration services for listed and unlisted corporations, private equity and real estate funds. 

A thriving fund industry rests on the foundation of a robust regulatory framework, assuring investors that their assets will be safeguarded against misappropriation. Nevertheless, the pursuit of greater protection often accompanies higher fees, prompting investors to scrutinise regulatory requirements for tangible and effective outcomes.

A data analysis by Investment Officer makes clear that alternative investment fund managers in Luxembourg increasingly prioritise launching new sub-funds or compartments under established Reserved Alternative Investment Funds, known as Raifs, instead of launching new primary structures.

Partners Group, a publicly-traded Swiss private market investment manager that draws a third of its revenue from Luxembourg,  has announced an increase in assets under management of 8 percent to 147 billion dollars as per end 2023. The firm said it experienced a record year in terms of client commitments, attracting 18 billion dollars in new client funds.