Most Read Contributor in Luxembourg, February 2017
Corporate financing in Europe is currently undergoing a
significant transformation. Historically, it has been largely
dominated by banks, but with banks being in the process of
deleveraging and currently burdened by additional capital
requirements, debt funds have stepped in and increasingly provided
funding to small- to medium-sized enterprises, either through
direct lending or through loan acquisition/participation. Debt
funds have grown significantly in number and size in recent years
and are constantly winning market shares vis-à-vis banks. In
Luxembourg, for instance, the number of assets managed by debt
funds has increased by a factor of six over the past five
In order to keep pace with this market development from a
regulatory perspective, the European Securities and Markets
Authority (ESMA) published its opinion on 'Key principles for a
European framework on loan origination by funds' at the
European Commission's request. In doing so, the ESMA took stock
of the national practices towards loan origination by investment
funds and proposed the cornerstones around which a harmonised
European framework on loan origination could centre.
In response to this, the Commission de Surveillance du Secteur
Financier (CSSF) published an update of its AIFM Law FAQ in June
2016, where it officially confirmed that Luxembourg-based AIFs may
engage in loan origination, loan acquisition or loan participation
activities, subject to specific organisational and operational
Even though market participants could always obtain swift
feedback from the CSSF through its approval and supervisory
process, the update of the AIFM Law FAQ provided most welcome
clarification to the market players in Luxembourg, reflecting the
growing importance of debt fund activities here. After all,
Luxembourg is the largest fund distribution centre in Europe and
second largest in the world.
Our service offering
In order to support market participants in the various
challenges related to loan origination, loan acquisition and loan
participation activities by funds, we have designed a training
curriculum covering all relevant aspects of these activities from
audit, risk management, tax, and valuation perspectives.
These topics are set up as separate, stand-alone
'modules', and it is possible to select all of the modules
or only single ones for a training session. For each of the
modules, a dedicated team of experienced professionals will provide
you with an in-depth view on the relevant regulatory provisions,
methodologies, and market best practice.
Besides the aspects mentioned above we are delighted to talk to
you on any further aspects around debt funds. Please contact me for
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
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As the banking industry continues to be shaped by technological and regulatory forces, we’ve gathered our European Central Bank (ECB) experts to hold a conference about this changing landscape. KPMG’s ECB desk from Frankfurt will join our Luxembourg banking partners to unpack the latest news from the ECB, including regulations that will affect the future of banking.
We would be very pleased if you could attend this event, which will be held at our Luxembourg headquarters in Kirchberg on 30 March. The talk will begin at 5:00pm and last until 6:00pm, at which point the evening will be turned over to a networking session with drinks.
Please let us know if you are able to attend by using the registration button above (by 27 March, if possible).
We look forward to seeing you there!
Here in Luxembourg, LPEA are holding an event which will offer new initiatives by bringing General Partners (GPs) and Limited Partners (LPs) together to examine and speak on the industry from the “360” perspective, leaving no stone unturned. We are a sponsor of the event, as well as having a speaker present. David Capocci, Partner and Head of Alternative Investments will be offering his own insight on the industry nowadays.
Over the last 40 years, the Cayman Islands has matured into one of the world's most sophisticated and successful international financial centres, providing a competitive, effective, transparent, cost-efficient and tax-neutral platform for international capital flows underpinned by an environment of legal, political and economic stability.
In the context of the Private Member's Motion, Cayman Finance strongly urges the movers of the motion and the other members of the House to remain focused on the need to protect the Cayman Islands Financial Services Industry, which is directly responsible for more than half of the Islands' economy, more than half of the government's revenue and employs more Caymanians than any other industry.
As the UCITS acronym suggests, its original focus was on investment in "transferable securities" although UCITS do offer far wider investment possibilities, as explained below.
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