As part of this , we asked nine figures in Luxembourg’s financial industry about the strengths and weaknesses of the grand duchy’s private market funds sector. , managing partner and CFO at Marguerite, a pan-European investor in long-life infrastructure, told Paperjam:
“From an infrastructure fund manager’s perspective, operating from Luxembourg presents several significant advantages. One of the primary benefits is the country’s stable regulatory and governmental environment. Luxembourg’s robust legal framework and consistent policy-making processes provide high predictability. Investors can rely on the continuity of rules and regulations, minimising the risks associated with sudden policy shifts or regulatory changes. This stability is particularly important for infrastructure projects that typically require substantial capital commitments and have long payback periods.”
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“Moreover, Luxembourg offers convenient access to a wide range of service providers, including legal, financial, and technical experts. This concentration of specialised services facilitates efficient investment management, due diligence, and operational support, making it easier for investors like Marguerite to navigate complex projects and ensure successful outcomes.”
“The only downside from the perspective of an infrastructure investor present in 15 other European countries, is that we have yet to identify an infrastructure asset in the local market that aligns with our portfolio strategy. We remain hopeful, however, that future opportunities will materialise, allowing us to take full advantage of Luxembourg’s stable and supportive business landscape.”
An alternate version of this article first appeared in the October 2024 on the private markets & fund ecosystem.