Loyens & Loeff is one of the major law firms in Luxembourg. Its Fund Finance team advises major lenders, fund managers and sponsors on financing solutions for regulated and alternative investment funds. Its multi-disciplinary team of lawyers who practise in the banking, finance, and investment management fields has positioned itself as one of the leading fund finance practices in Luxembourg.
The growing need for fund finance solutions
Investment funds have seen a considerable development in Luxembourg, and fund finance has emerged as a major means of financing. An increasing number of banks have responded to the growing demand of financing from investment funds and now offer specialist bridging and leverage solutions. As Vassiliyan Zanev, Partner in the Banking & Finance Department and Global Head of Fund Finance, notes “the recent years have been particularly active as regards fund finance transactions in Luxembourg and Europe, with positive growth, strong credit performance and absence of loan defaults.”
Luxembourg continues to strengthen its ranking as the world’s second largest fund domicile after the United States; the assets under management of Luxembourg-domiciled funds have in 2017 for the first time crossed the bar of EUR 4 trillion and stood at EUR 4.192 trillion as of 30th November 2018. According to Marc Meyers, Partner and Head of the Investment Management Department, “this increase is not only due to the growth of traditional Luxembourg-domiciled UCITS funds, but also the continued strong growth of alternative investment funds.” The modernisation of the Luxembourg partnership regime has been a significant driver for the success of Luxembourg as a European hub for alternative investment funds.
Loyens & Loeff has created a dedicated Fund Finance team. For Antoine Fortier, Local Partner in the Banking & Finance Department, “the advantage of our team, which brings together in-depth knowledge of practices used in the investment management sector and the banking world, is to provide clients with a more comprehensive view of the trends and the practices in the fund finance industry.”
As Thibaut Partsch, Partner in the Investment Management Department notes “our client does not have to deal with several intermediaries. He has just one point of contact capable of advising on all aspects concerning both the establishment and the bank financing of the fund.”
" The assets under management of Luxembourg-domiciled funds have in 2017 for the first time crossed the bar of EUR 4 trillion and stood at EUR 4.192 trillion as of 30th November 2018 "
The goal is to offer the most innovative, pragmatic and tailor-made solutions for clients. According to Maude Royer, Senior Associate in the Banking & Finance Department, the team’s “best asset is our shared passion for fund finance and its development.”
Given the continuing growth of the funds industry in Luxembourg, the Loyens & Loeff team believes that fund finance will become one of the pillars of the Luxembourg finance sector. Having successfully represented lenders and fund managers in most of the major financings involving Luxembourgish funds, the team is proud to actively contribute to the industry’s development here.