GP Survey 2021

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We thank all survey participants and LPEA’s Central Intelligence Committee which selected the questions and analysed the answers provided.

The LPEA GP Survey is being conducted by the LPEA since 2011 with the objective of characterising the Luxembourg Private Equity sector, notably through its General Partners (GPs).

The survey identifies the type of GPs present in Luxembourg, which investment strategies they are committed to, how they structure their operations and define their presence in Luxembourg and what is their perspective on the different elements of Luxembourg as a Private Equity hub.

The results of the survey give a snapshot of the Luxembourg PE and VC industry and provide valuable inputs which are shared with public authorities in the context of LPEA’s public advocacy efforts.

The PE industry continues to experience significant changes coming from regulatory developments and new legislation, all of which emerging from international bodies such as the European Commission and the OECD.

Luxembourg in particular has seen a positive impact with the growing number of GPs present in the country both as a result of its sophisticated legal framework fully adapted to the AIFMD as well as the impact of the final outcome of the Brexit process which led many players to reinforce their presence in Luxembourg and non-European GPs to adapt their model and strategy accordingly.

Survey Highlights
 
  • Luxembourg is reinforcing its leading position as an alternative fund location. The number of Funds and Fund Managers structured in Luxembourg continues to increase year on year;
  • The RAIF (Reserved Alternative Investment Fund) and the unregulated SCSp (Special Limited Partnerships) represent over 50% of PE’s investment vehicles. These two options are used for all strategies;
  • Two third of GPs that responded to the survey are now operating a fully authorized AIFM (vs. half of them three years ago);
  • Luxembourg’s best asset remains the stability of its business environment;
  • The market has witnessed an increase in substance with an average head count of 9.6 FTE;
  • 65% of new hires being highly qualified staff;
  • ESG is a key concern and is already translated into specific policies for 83% of surveyed GPs.

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