L’Association luxembourgeoise du capital-investissement LPEA a organisé jeudi sa conférence Insights sur la collecte de fonds et les relations avec les investisseurs. Il est apparu clairement que, pour rester compétitif, le Luxembourg doit abaisser son seuil d’entrée minimum pour les investisseurs en private equity sans attendre l’émergence de nouvelles règles AIFMD de l’Union européenne.
Several other EU member states, including Germany, Ireland, the Netherlands and Italy, currently apply a 100.000 euro threshold for investors that wish to invest in private equity or alternative investments. Luxembourg’s law still defines the threshold at 125.000 euro.
“We are no longer the gold standard,” said Gilles Dusemon, member of the executive committee of the LPEA, at the opening of the association’s conference on fundraising and investor relations at the Philharmonie in Luxembourg. Dusemon also is partner in the private equity and real estate practice of law firm Arendt & Medernach.
Luxembourg rejected
Dusemon described one recent example where an international firm decided to set up its fund - a Reserved Alternative Investment Fund - in Ireland instead of Luxembourg after it was made clear to them that an investor threshold of 100.000 euro was not possible under the grand duchy’s law.
Private equity and alternative investments have become increasingly competitive in recent years against traditional listed investments. The domain is no longer exclusive to institutional investors but also is increasingly seeing inflows from family offices and high net worth individuals who look to commit to long-term investments.
New AIFMD regime coming
European Union lawmakers are recognising the change in the market and are preparing to adjust EU legislation in the second AIFMD directive, which is expected to enter into force in the coming years, possibly in 2025. The directive is expected to propose a professional investor threshold of 100.000 euro.
LPEA’s Dusemon called on Luxembourg stakeholders and policymakers not to wait until AIFMD2 has been adopted. “Do we have to wait two years?” he asked. “This is low-hanging fruit. 100k has already become the industry gold standard.”