Participation has already exceeded expectation for the first Luxembourg Private Equity and Venture Capital Association (LPEA) conference at the Philharmonie tomorrow afternoon. Almost 400 people have already signed up, which is not a bad result for an industry that scarcely existed in Luxembourg a few years ago.
The LPEA Insights conference will address many of the questions and issues at the core of this sector, now one of the fastest growing in the Grand Duchy. Bringing together 18 speakers including LPEA president, Jerome Wittamer, Mark Florman, chairman of Listed Private Equity (LPEQ), and Finance Minister Pierre Gramegna, the afternoon will take a survey of this increasingly important industry, which in Luxembourg is arguably a little the victim of its own success as the sector’s growth seems to have outpaced awareness of its possibilities among investors.
Under five separate moderators, from KPMG, SGG, Arendt & Medernach, Luxembourg Investment Solutions and AlterDomus, subjects up for discussion at the conference include what it takes to succeed in private equity, Luxembourg’s place within the global venture capital system, and the rise of direct lending in Europe. The aim of the conference is to bridge the gap between the sector and those who stand to benefit from investing in it.
Private equity’s growth can partially be attributed to the fallout from the global financial crisis in 2008. As banks have since resisted lending to any but the bigger players, and governments have shied away from public investment, private equity has stepped in to fill the gap created by companies in need of investment, which is delivered in exchange for equity in the business. Private equity takes a mid-to-long term view, with investments typically running over four to seven years.
Founded in 2010 in order to represent, promote and protect the interests of private equity and venture capital actors and their supporting actors in Luxembourg, as well as building up the sector’s credibility and visibility, the LPEA has seen its membership grow six-fold in the intervening years to just one member shy of 150 today.
The association has seen the industry develop in Luxembourg from one rooted in “back-office” services, through the development and entrenchment of mid-office services, to the emergence of the flourishing front-line. As Paul Junck, managing director of LPEA said, “More and more, the deal makers are present here in Luxembourg.”
Thus, the industry now occupies the time of 6,000 people in the Grand Duchy, half of whom are wholly dedicated to the sector. The government has recognised its significance, and set about facilitating the platform here through its encouragement of alternative funds structures and early implementation of the directive on alternative funds management.
All this has contributed towards making Luxembourg a jurisdiction of choice for private equity and venture capital managers. Some €400 billion in assets are now under management here, and thirteen of the largest global funds — more €1 billion — operate out of the Grand Duchy.
THE LPEA Insights 360 GP View Conference is at Philharmonie from 14:00 to 19:00 on Wednesday 26 April.
Image: Paul Junck, managing director LPEA, Rajaa Mekouar, director LPEA, and Jérôme Wittamer, president LPEA
