PLACE FINANCIÈRE & MARCHÉS — Marchés financiers

3 questions à Daniela Klasen-Martin (Crestbridge)

“Sustainable finance as a theme is not going away”

Daniela Klasen-Martin: “Following the UK’s departure from the EU, Luxembourg is doing well, according to a study by British real estate services company Knight Frank.” (Photo: DR)

Daniela Klasen-Martin: “Following the UK’s departure from the EU, Luxembourg is doing well, according to a study by British real estate services company Knight Frank.” (Photo: DR)

Ahead of the ‘10x6 Finance: Luxembourg post-Brexit’ event organised by the Paperjam + Delano Club on Thursday 25 March, one of the speakers, Daniela Klasen-Martin (Crestbridge), shares her vision of a post-Brexit Luxembourg.

Can you give one example of a way that Brexit has resulted in a change for you or your organisation?

Daniela Klasén-Martin. – “Brexit has created uncertainty around domiciling. With questions around what the full regulatory landscape will look like when the dust settles, some managers have looked more at different European domiciles. A PwC report found that Luxembourg was particularly popular in 2020 with 68% of asset management giants choosing to set up their first domiciled fund there. Crestbridge is well placed to seize opportunities offshore and onshore with our offices in Luxembourg, the UK, the Channel Islands and now Ireland.

We started preparing for Brexit years ago and our multi-jurisdictional approach has allowed us flexibility no matter which way the current is moving. In Luxembourg, we have certainly seen an increased interest in our 3rd Party ManCo solutions, as Luxembourg remains the domicile of choice. In the last year, despite the Covid outbreak, we have doubled our AUM and our team.

In what way has Brexit changed the way you view the EU?

“Brexit has confirmed my faith in the EU. I believe that the freedom to move and work around Europe is a fantastic asset.

When I look back at my own life and career, I realise it would have been very different without the EU. I was born in Italy, with an Italian mother, a Swedish father, and married to a French man. I have spent much of my working career in Sweden, France and Luxembourg and I would not have had half the opportunities that I have been afforded if it had not been for the EU. Above all, if it hadn’t been for these opportunities, I wouldn’t have approached the world the way I do today.

If we were having this conversation in five years’ time, what condition do you believe the EU will be in?

“I think that the EU will continue to benefit from a cohesive approach as regards key targets. Sustainable finance as a theme is not going away. We have already seen hugely positive change in this arena with the EU taxonomy and the increasing number of ESG/impact funds. According to a PWC Private Equity Responsible Investment Survey, 91% of respondents have already adopted or are currently developing a responsible investment or ESG policy.

We are already seeing a shift towards better regulated jurisdictions that were previously price prohibitive as managers place more emphasis on ESG and regulation as investors have become more involved. A survey conducted by IFI Global Research in 2020 found that the top two factors for choosing a domicile were:

1) the jurisdiction is well known by our investors;

2) regulatory standards and established legal framework.

This is particularly notable as these two factors were considered more important than cost.

I think the EU is a good vehicle for realising ever more sustainable finance. European nations pulling together stand a better chance of developing a successful framework for the green effort.”

You can register to join us at this 10x6 here.