Hana Prochaska, Director, Head of Business Development Europe at Aztec Group. (Photo: Hana Prochaska)

Hana Prochaska, Director, Head of Business Development Europe at Aztec Group. (Photo: Hana Prochaska)

As part of the 10x6 Private Equity Outlook, organized by the Paperjam+Delano Business Club on Tuesday 18th of June 2024, Hana Prochaska, Director, Head of Business Development Europe at Aztec Group, shares what inspires her.

How have sustainable finance regulations influenced the private equity ecosystem in Luxembourg?

. — “Luxembourg is a pioneer when it comes to sustainable finance. The Luxembourg government has established the Luxembourg Green Exchange, a platform dedicated to sustainable finance instruments, while many of the people I speak to see Luxembourg as the home of sustainable finance globally. Luxembourg also adheres to EU regulation such as SFDR and the EU Taxonomy, and is committed to promoting responsible investment practices and the transition to a greener, more sustainable economy and world.

What specific factors make Luxembourg attractive to private equity investors today?

“The alternative industry in Lux grew by 33% per annum in the three years to the end of 2022, and we see no reason why this should slow down now. Luxembourg is considered a global centre for private markets investment, with investors accessing alternatives funds via the AIFM Directive adhered to here. Meanwhile new structures like ELTIFs allow managers to market their funds to retail investors, meaning alternatives funds are accessible to more investors now than ever before. Added to this is the people – Luxembourg is home to a myriad of cultures, Aztec Luxembourg is made up of over 70 nationalities alone, and this breadth of diversity makes it unique and richer for it.

How do you foresee the impact of digital innovation on the private equity sector in the years ahead, and what opportunities are emerging as a result?

“Luxembourg is constantly innovating, both from a regulatory and product point of view, and from a digital and technological perspective. In the digital space, we’ve seen three successive new blockchain laws passed, while we’ve also seen legal certainty introduced around tokenized securities. The retailisation of private markets is and will continue to increase the pool of capital that is available for investment. From an operating model perspective, labour-intensive tasks will be automated through the use of AI, freeing people up to complete more value-add tasks such as unearthing and evaluating new investment opportunities.”