2 minutes read
This hub serves as the nerve center for the manager’s European deal-making activities, making the choice of jurisdiction critical. With Luxembourg and the Netherlands emerging as prime contenders, Loyens & Loeff, a leading firm in continental Europe with offices in, among other financial centers, Luxembourg and the Netherlands, as well as satellite offices in New York and London, offers tailored support for US fund managers navigating the complexities of asset acquisition structuring in Europe.
As US fund managers launch their EU investment hubs, they typically begin with a small team tasked with managing European acquisition structures and deal-sourcing. Over time, these hubs evolve, expanding their functions to accommodate the growing needs of capital deployment and fundraising strategies across Europe.
Selecting the optimal jurisdiction for an EU investment hub hinges on several factors, such as the US manager’s investment strategy, the location of the European targets and fund entities, the legal and tax climate, and talent availability. While the Netherlands attracts US fund managers who set up deal-sourcing teams in mainland Europe and is well positioned to accommodate asset acquisition structures, Luxembourg emerges as the frontrunner for hosting below-fund platforms and acquisition structures. Over the past decade, Luxembourg has gained recognition as a host country for deal-enabling functions and deal-sourcing teams.
When there is a need to relocate US team members to Europe, the quality of life and central location of the host country’s hub play a key role, with both Luxembourg and the Netherlands scoring high in those areas and topping the ranks of expat-friendly jurisdictions.
At Loyens & Loeff, we boast a dedicated cross-border team of corporate, tax, and regulatory lawyer’s adept at supporting US fund managers throughout the process of selecting, launching, and servicing their EU investment hub. Leveraging their wealth of experience, hands-on approach, and seamless integration between the various offices, our team is equipped to provide round-the-clock assistance.
In addition to its robust platform and acquisition structuring capabilities, Loyens & Loeff is renowned for its expertise in fund formation. With a New York City-based fund formation team to support US fund managers with their capital raising efforts in Europe through Luxembourg fund structures, complemented by a team of approximately 60 investment management lawyers based in Luxembourg, the firm offers comprehensive support for capital raising efforts in the European market.
For US fund managers seeking to enter the European deal-making scene, Loyens & Loeff stands ready to provide comprehensive support tailored to their specific requirements.
This article was first published by the Luxembourg Times.
