A number of US private equity and asset management firms, including Blackstone Group, Carlyle Group and Oaktree Capital Management, are understood to be looking at Luxembourg from which to market and distribute funds in the EU after Brexit is implemented, specifically to preserve access to European investors.
Both Blackstone and Carlyle - both already have some operations in Luxembourg - are understood to be planning to establish so-called passporting rights in the Grand Duchy in what is seen as more an administrative move rather than moving staff, as it is looking increasingly likely that Britain will not remain within the single market.
The move will give the US private equity firms "passporting" rights to allow them market and sell their services throughout the EU; current regulation stipulates that funds registered outside the EU need to register in each individual country they want to market, therefore the attractiveness of having a "local" authorisation.
Blackstone is understood to be employing six staff in Luxembourg to market and distribute their funds in the EU. Oaktree Capital is already listing funds in Luxembourg.
