Despite a challenging market environment and a rapidly evolving sector, ManCos have demonstrated remarkable resilience, adapting their business models and seeking out business opportunities created by regulatory change.
Luxembourg is a key investment jurisdiction in Europe and sits at the core of Apex Group’s single-source solution. With over 1,000 people based locally in Luxembourg upon close of the planned acquisition of Sanne and Maitland, it is also the home of both our Management Company (“ManCo”) and Banking subsidiaries. Our ManCo proposition allows asset managers to streamline their operations in a cost-effective manner by delivering third party ManCo services, supplemented by a range of administrative, middle office, banking, depositary and custody services delivered through the wider Apex Group.
Key findings of PwC’s Management Company Observatory research include:
- Assets Under Management (AuM) managed by Luxembourg management companies rose more than 22% to €5,314bn.
- Continued success for the Alternative Investment Fund Manager (AIFM), almost all new entrants this year have AIFM licences with 13 new AIFMs and number of Super ManCos remaining stable.
- UCITS assets reported a 16% increase while AIF assets grew 41% year-on-year.
Jointly, Apex Group companies FundRock and LRI Invest S.A. (“LRI”) have been confirmed as the largest Third Party ManCo service offering in Luxembourg and here, we consider some of the drivers of their growth over the last year.
Apex subsidiary, LRI Invest S.A. (“LRI”), a leading provider of ManCo services, again showed stable AuM over the last year and remains in the top ten list of Third Party ManCos.
Utz Schüller, Managing Director at LRI Invest comments: “This latest report from PwC continues to recognise the important role of Apex Group companies in Luxembourg’s competitive and growing ManCo sector. We look forward to supporting the continued development and innovation of the ManCo sector and are excited to be a part of the positive outlook for the fund ecosystem in the Grand Duchy, in 2022 and beyond.”