L-R: Jerzy Kasprzak, Deputy CEO; Agnieszka Sawa, CEO; Piotr Zaczek, Luxembourg Head; Credit: Q Securities
Q Securities, an investment firm headquartered in Warsaw, has announced its entry on the Luxembourg alternative fund depositary market.
The Polish company has launched operations in the Grand Duchy after securing approval from Luxembourg's financial regulator, the CSSF, to offer depositary services to alternative funds. Q Securities is the first investment firm to be granted this type of licence in Luxembourg.
“It’s an important milestone as there’s a growing market tension with many mainstream banks – traditionally offering depositary services – pulling out from this business line”, commented Piotr Zaczek, Q Securities country head in Luxembourg. “Increasing regulatory requirements make it harder for banks to service small- and mid-sized funds, and instead, some drop these accounts altogether".
Alternative funds are legally required to appoint a depositary, with some fund managers, according to Q Securities, "struggling to find a service provider".
The company partners with alternative investment fund managers (AIFMs), central administrators, law firms and auditors. “Our sole focus is on depositary services, making us the preferred partner for other independent fund industry professionals, who are often reluctant to cooperate with rival one-stop-shop service providers”, Piotr Zaczek said.
The 60-strong company currently provides depositary services to 180 funds in Luxembourg and Poland with combined assets of €15 billion. It services a broad range of Luxembourg-domiciled alternative funds, including private equity, real estate, securitisation, hedge and ESG funds.
Over the years, several financial companies from Luxembourg set up office in Poland by opening shared service centres in Krakow, Wroclaw, Gdansk and Lodz. “We are doing the same step but in the other direction”, explained Mr Zaczek.
The company’s Luxembourg office is located in Luxembourg-Kirchberg.