August 12, 2006

Hedge Funds Look to Luxembourg

Luxembourg is slowly but steadily edging out Dublin as the favored location for servicing hedge funds. The Luxembourg Funds Industry Association (Alfi) reports that there were 363 hedge funds domiciled and/or administered in Luxembourg, with assets totaling $90.7 billion, at the end of 2005. There are various reasons attributed to this development:

  • Changes in legal rules and regulations have contributed to the growth of the hedge fund sector in Luxembourg.
  • The Financial Sector Supervisory Commission (CSSF), the financial services regulator in Luxembourg, and a ministerial decree authorized the Luxembourg Stock Exchange to list foreign funds including those established in the Cayman Islands and the British Virgin Islands.
  • Various major institutions are already well established in Luxembourg as investors, fund promoters and service providers.
  • The country has a good reputation for investment funds because of its willingness to comply with European regulations and directives.
  • Service providers in Luxembourg are offering quality services within a stable political environment.
  • Luxembourg is located in a central location in Europe when compared to Dublin, which is further north.
  • The country is multilingual; Dublin mainly speaks English.
  • It is easier to get good quality staff in Luxembourg to handle alternative products and the growth of assets.

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August 12, 2006 in Emerging Markets | Permalink




Comments

Hello,

does anyone know how to launch a hedge fund in luxembourg?
or any interessting document about it?
besides what is the legal structure of a hedge fund in luxembourg?

thanks

Posted by: arnaud | Oct 21, 2006 6:19:41 PM

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