Investment Officer Luxembourg

This week’s overview of transfers, appointments, promotions and other people news includes updates from Euroclear, Arrow Global, Partners Group and KPMG Luxembourg.

In the private equity (PE) market, a significant shift is occurring as Limited Partners (LPs) increasingly demand the release of funds from older investments before considering new commitments. This change comes amidst a backdrop of unprecedented levels of “dry powder” - uninvested capital within PE firms.

The use of liquidity pockets for open-ended Eltifs, European long term investment funds, remains to be clarified by the European Commission. In their first contribution as Knowledge Partners for Investment Officer, Marc Meyers and Sebastiaan Hooghiemstra of Loyens Loeff Luxembourg review the liquidity management tools proposed under the EU’s supervisory standards for the new generation of Eltifs.

Small-cap stocks in Europe seem to be making a comeback. After two years of declining relative valuations, the usual premium these stocks hold over large caps has vanished, even turning into a discount at the end of last year. However, recent weeks have seen this discount narrow significantly.

European financial services had witnessed a marked decline in global market share over the past 15 years, particularly within the asset management sector. While reviewing the competitiveness of Europe’s financial sector, OMFIF and Luxembourg for Finance have identified Europe’s strengths and weaknesses.

The European Exchange-Traded Fund (ETF) industry has witnessed a remarkable surge in 2023, with assets under management reaching an unprecedented 1,563.5 billion euro. This growth was bolstered by significant estimated net inflows of 155.6 billion euro, according to LSEG Lipper data.

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.