Private Equity industry shall be expanded – Luxemburger Wort – Press article

The title of this German-language article, which was published in “Luxemburger Wort” on 14 January 2014 and quotes Arendt & Medernach’s partners Gilles Dusemon and Claude Niedner, roughly translates to “Private Equity Base shall be expanded”. This article comments on an intention of the newly constituted Luxembourg government to campaign for private equity companies and to bring the largest funds of this type to Luxembourg. The last milestone in the development of investment funds legislation was reached in July 2013 when the AIFM Directive was transposed into Luxembourg law. Arendt & Medernach’s partner Claude Niedner is being quoted as stating that the AIFM Directive, and the application thereof, is good for Luxembourg as it provides considerable advantages and chances for the financial centre Luxembourg; however, the Directive could have been drafted better. Arendt & Medernach’s partner Gilles Dusemon is being quoted as saying that there is still room for improvement of the provisions on “carried interest”. The article also states that due to the recent change of government and a certain initial phase, there is a threat that time will run out. Industry circles are being quoted as saying that it is necessary to make use of the year 2014 in order to secure a pole position for Luxembourg. Finally, the article reports that the AIFM Directive is not necessarily popular with everyone.