This initiative is part of the Commission's priority of establishing a Capital Market Union (CMU). Broadening access to finance for SMEs, in particular for innovative companies, start-ups and scale-ups, is at the heart of the 2015 CMU Action Plan.1 Access to finance remains difficult for these firms, particularly when they move from the start-up into the expansion phase. This is why the CMU Action Plan places great emphasis on strengthening the different sources of alternative finance, including crowdfunding. With appropriate safeguards and investor protection measures, the scaling-up of crowdfunding across the Single Market can be facilitated so that it becomes a more important source of market-based financing in support of job creation and growth.
Trend towards simplification of Real Estate Fund structures and strategies. Luxembourg’s fund structuring toolbox attracts large international Private Equity houses. Loan funds fill the financing gaps by investing in real asset classes.
The development of non-banking credit intermediation has led loan funds, which provide an alternative to the banking industry as a source of financing the real economy, to expand significantly in the Grand-Duchy, and this trend that is expected to continue.
Despite the fact that Luxembourg has been active in the Private Equity field for more than two decades, local presence was historically limited mostly to smaller and / or emerging General Partners. The opportunities offered by the Luxembourg fund structuring toolbox have now motivated many large international houses to set up and conduct business out of Luxembourg.
Though umbrella funds remain popular due to various practical and cost considerations, ALFI’s Real Estate Investment Funds Survey 2017 confirms the trend towards simplification of REIF structures and strategies.
In recognition of actions implemented in the area of corporate social responsibility, ALFI’s “Entreprise Socialement Responsable – ESR” label, delivered by the National Institute of Sustainability and Corporate Responsibility, has been renewed for another three years.