Luxembourg over the last 2 years has seen an increased of 40% of the private debt fund industry, the main reasons for such attraction can be summaries below:
- Entry to European investor which facilitate the manager investment strategy.
- Steady and reliable jurisdiction with a great reputation (part of EU Member State, AAA credit rating, benefits from government due to leading alternative investment center, wide network of institution fostering the AIF feature and stable environment).
- Debt Fund Expertise with staff having more than 30 years in debt servicing including administration, depositary, tax reporting, ect..).
- Key debt players with more than 70% of the top 30 loans managers worldwide based in Luxembourg.
- Investment Variety with the possibility to invest into any kind of debt instrument without any limitation.
- Loan origination thanks to the Luxembourg fund framework enabling to stand on the loan origination side as well as on loan participation side as long as the fund meets the requirements in terms of risk management, asset management oversight and supervision. Any kind of debt strategies can be used in Luxembourg thanks to this framework, even loan origination in secondaries, mezzanine and distressed debt.
- Innovative investment products including the SLP which can be open-ended, semi open-ended or closed-ended.
- Legal Framework which is flexible and clear facilitating the setup of AIF for managers.
- Transparency Tax environment thanks to the SLP being a tax neutral vehicle and enhance by a full access to EUR tax directive a full support from OECD and more.