On Monday evening, the Luxembourg Private Equity Association (LPEA) held a New Year's Reception at House 17 in Luxembourg city centre which attracted circa 120 members.

Prior to the networking reception, Paul Junck (LPEA Managing Director) welcomed all attendees and reviewed LPEA's activities throughout 2016. Jerome Wittamer (LPEA President) addressed the year ahead and recalled that both the Financial Times and Bloomberg have recently described Luxembourg as a Private Equity Hub.

He announced that there would be a landmark event held in Luxembourg; on 26 April 2017, the Philharmonie will host a four-hour event with keynote speakers connecting the dots and integrating our ecosystem, bringing everyone up to speed about what our members are doing. It will also support private banking, wealth management and family offices to seek alternative investment opportunities and are unaware of all the business carried out by investors out of Luxembourg.

The ambitious programme includes buyout, venture capital, private debt, emerging markets, fund of funds, direct and co-investments. He stated "Depending on its success, we intend this event to be held at least annually" and paid special thanks to Rajaa Mekouar for her energy in making this event a success.

Looking ahead to 2017, he stated "While major political events, such as Brexit and the US election, will have an impact on our industry, there are also new rules and guidance affecting private equity and venture capital very directly being developed in Brussels and internationally, and there are opportunities for Luxembourg to further solidify its competitive edge and also some darker clouds demanding our attention. Our goal is to address these opportunities and threats."

On Brexit, he stated a working group was set up, led by Olivier Coekelbergs, to make sure that LPEA members are properly informed of the potential impact of Brexit on the Luxembourg private equity sector and to give them tools that may assist them in discussing Brexit-related issues with their clients or prospective clients.

On AIFMD, he said that a review is due to start later this year, with an ad hoc working group of the Legal Technical Committee addressing the 11 issues that have been identified as critical for the industry by Invest Europe. The European Commission will begin its review of the application and scope of AIFMD on 22 July 2017. After the review is complete, the Commission will publish a legislative proposal for amendment. This is not expected to be before the end of 2017.

As MLD IV is due to come into force in June 2017, he stated that it has become apparent that the implementation is very burdensome for certain firms. The Legal Technical Committee will therefore assess the significance of MLD for member firms.

Other issues to be addressed by the LPEA in the coming year include EuVECA/EUSEF regulation - LPEA has collaborated with ALFI to produce a common position paper which will be sent to the EU Parliament tomorrow; the update of this regulation will be voted before the Summer 2017 - BEPS and European initiatives such as ATAD, as well as national points including withholding tax, carried interest and VAT on directors’ fees.

Photo (L-R): Jerome Wittamer (LPEA President); Paul Junck (LPEA Managing Director)