Xavier Parain, CEO of Lemanik Asset Management, a Luxembourg-based third-party management company, discussed the company’s strategic direction following its by Blackfin in an interview with Paperjam. Parain’s top priority is to solidify relationships with clients, ensuring that service quality remains central during the transition. “Lemanik has built strong relationships over the years and I want to reassure them of our continued commitment to service quality,” Parain said. He also emphasised the importance of fostering a culture of open communication within the company, highlighting that collaboration is essential to meeting client expectations.
With approximately 85 professionals at Lemanik, Parain is working to align the team with the company’s new strategic vision. “The teams have responded positively to our strategy, recognising that small and mid-sized asset managers require independent services that address their specific needs,” he noted. As the company continues to grow, the plan is to further strengthen the team by bringing in additional expertise where necessary.
Strategic focus
Parain emphasised that Lemanik’s strategy remains centred on offering tailored management company (manco) services to small and mid-sized asset managers, rather than pursuing large-scale asset growth. The company plans to uphold an open-architecture model, allowing clients the flexibility to choose their service providers, particularly in fund administration. “We are committed to serving this segment of the market. Some small and mid-sized asset managers have expressed frustration with the level of service provided by larger firms,” Parain said.
The firm’s focus is on expanding its service offering, entering new markets and exploring potential acquisitions to drive growth. Specifically, Lemanik aims to increase its presence in key European markets while strengthening its operations in Luxembourg. “Over the coming years, our priority will be to expand our service offering, attract new clients in Luxembourg and internationally, and strengthen our presence in key markets,” Parain explained.
Expansion plans
Parain envisions Lemanik differentiating itself from larger providers by maintaining its position as a pure management company. This model enables asset managers to choose their fund administrators and depositaries based on their unique needs. Parain views this flexibility as a key competitive advantage, stating, “By maintaining a pure manco model, we ensure that clients have the flexibility to select fund administrators and depositaries that best align with their strategies and requirements.”
As part of its growth strategy, the company is also looking to expand into other European markets, such as France and develop new services like distribution support to help clients grow their investor base. “We are developing new services, including distribution support, to help asset managers grow their investor base,” Parain added.
Regarding broader market trends, Parain acknowledged the challenges presented by growing regulatory pressures and industry consolidation. Lemanik, however, is open to potential partnerships and acquisitions with firms that share similar goals. Parain mentioned that there are opportunities for consolidation, particularly in the management company sector in Luxembourg and across Europe. “We remain open to potential partnerships or mergers with firms that share a similar culture and strategy,” he said.
Past lessons
In light of a fine by the Luxembourg Financial Sector Supervisory Commission (CSSF) in 2024, for non-compliance regarding delegate oversight, Parain clarified that the necessary corrective actions had already been implemented before his arrival. “The CSSF acknowledged in its publication that these measures had been implemented,” he confirmed. Furthermore, “we now have the tools, processes and expertise in place to ensure robust oversight of delegated activities,” assured Parain.
ESG and digitalisation
As the asset management industry faces growing demands for environmental, social und governance compliance and digitalisation, Lemanik is positioning itself to adapt to these changes. Parain noted that the company is integrating ESG principles both internally and across its operations. “ESG is increasingly a factor in client selection and we are incorporating these elements into our service offering,” he explained. Lemanik is also monitoring relevant financial technology advancements with the assistance of its new shareholder, BlackFin.
Additionally, with the growing demand for alternative and private assets, Lemanik is well-positioned to expand its service offerings to support clients in these areas. The company has already built significant expertise in private markets, including evergreen funds, funds with defined maturity and master-feeder structures. “Lemanik has already built expertise in these areas, investing in systems and processes to support clients working with these asset classes,” Parain said. He concluded, “We focus on strategies where we have strong expertise.”