CACEIS NEWS 39 EN

4 caceis news - No. 39 - September 2014

Supporting Private Equity and Real Estate funds in their international growth

fers them solutions designed to their needs and effective processing of their transactions through a single contact point. PERES team supports clients in all types of private equity activities with a full range of high quality services to suit any structure, strategy and country of investment. Clients benefit from an experienced team with in-depth knowledge of the private equity industry, as well as tailored information systems, in- cluding eFront. Today, among oth- ers, they serve Omnes Capital, a leading name in private equity spe- cialising in financing SMEs, with €2.1 billion of assets under manage- ment for 160 companies and CNP Assurances for their investments in non-listed vehicles. MANAGERS AND INVESTORS CACEIS’s PERES team supports pri- vate equity fund managers throughout the investment life cycle, from initial investment through to exit, from valu- ing portfolio interests through to col- lecting revenues. By delegating day- In July 2013, Luxembourg strength- ened its regulatory framework by introducing a new “carried inter- est” law, enhancing the simple lim- ited partnership structure (Société and Commandite Simple or SCS), and introducing the Special Limited Partnership structure (Société and Commandite Spécial or SCSp) which is directly inspired by the US/UK- style “Limited Partnership”. The new legal framework for both the SCS and SCSp structures permits great- er flexibility while increasing the level of asset security. Furthermore, Luxembourg enables alternative in- vestment fund managers to set up a highly-flexible fund vehicle which is tailored especially for Private Equity and Real Estate investment strategies. This modernised legislative frame- work demonstrates the pragmatic ap- proach the Luxembourg authorities have taken, which is a major strength that has enabled it to be positioned as Europe’s leading financial centre for cross-border funds. The country’s sta- bility and financial strength can also MAIN BENEFITS FOR PRIVATE EQUITY FUND must appoint a depositary either in a European member state or in the country where the fund is domiciled. In illustration a US fund manager, which markets its funds to German investors, has selected CACEIS as its depositary to obtain the necessary regulatory approval for distribution locally. LUXEMBOURG, A LEADING HUB FOR PRIVATE EQUITY AND REAL ESTATE FUND SERVICING

be seen in its AAA rating, its 25-year long history as a domicile and distri- bution hub for Europe’s successful UCITS funds. Luxembourg is also the leading European jurisdiction for Private Equity and Real Rstate fund servicing, with a highly-skilled and multilingual workforce. Our clients benefit from being ser- viced out of the large Luxembourg fund centre, complemented by CACEIS’s long standing experience and teams who know and understand the specific servicing needs of Private Equity and Real Estate funds and managers. A DEDICATED PRIVATE EQUITYAND REAL ESTATE TEAM The PERES team (Private Equity, Real Estate and Securitisation) at CACEIS is fully dedicated to private equity, real estate, Infrastructure and unlisted debt funds, and is made up of specialists based in Germany, France, Luxembourg, Switzerland, Italy, the US and Canada. Across CACEIS, the team manages more than €96 billion of assets under depositary. Having been working in the PERES domain for a considerable number of years, the team has gained a strong experience in servicing a broad range of investment strategies and struc- tures, allowing CACEIS to pro-ac- tively support fund managers. A team, dedicated to the PERES activity, is the contact point for the entire range of services offered to cli- ents, including fund administration, depositary and middle-office servic-

es. This close-knit structure enables CACEIS to provide greater respon- siveness to PERES client needs, as the relationship managers are directly responsible for the entire scope of the fund’s operations. CACEIS provides managers with modular or fully integrated solutions. Our clients benefit from the support of a leading asset servicing company with offices in the most important ju- risdictions, and staff who have a high level of expertise in servicing private equity, real estate, infrastructure and unlisted debt vehicles Creation of Special Limited Partnerships (SCSp) in Luxembourg: 176 Source LPEA CACEISWorld no. 3 in RE fund administration Source: Evestment survey 2014

PASCAL HERNALSTEEN, Head of Private Equiy Real Estate Securitisation, CACEIS, Luxembourg

CACEIS helps private equity and real estate fund managers take advantage of international growth opportunities brought about by the AIFMD P rivate equity and real estate fund management companies operating in a number of European countries generally prefer working with a single depositary operating in key jurisdictions for alternative investment funds. CACEIS, as one of the world’s lead- ing depositary banks, with offices in Europe, America and Asia, pro- vides support to global fund manag-

ers, from the fund’s inception and throughout the fund’s life cycle. A predominant US fundmanager has re- cently awarded CACEIS a depositary mandate for its German, Luxembourg and UK fund ranges, with the objec- tive of expanding the partnership with CACEIS to France and Italy. The AIFMD (Alternative Investment Fund Managers Directive) also stipu- lates that AIFMs as well as AIFs that are domiciled outside the European Union and therefore not directly gov- erned by the AIFMD, must register in an EU member state in order to benefit from the new private place- ment regime in Europe, which comes into force in 2018. Several countries including Germany and Denmark, al- ready require non-EU domiciledAIFs to register with the local regulator to be distributed. Under these regula- tions, AIFs domiciled outside Europe

€ 96 bn in assets under Depositary for PE & RE funds

Business support services customised to Private Equity funds

PORTFOLIO MANAGEMENT ▷ Investment monitoring and reporting ▷ Support for the front office in day-to-day management of investments ▷ Keeping the portfolio of funds in a database shared with the fund manager ▷ Circularisation of registrars ▷ Monitoring tax quotas CASH MANAGEMENT ▷ Opening cash accounts and handling cash instructions ▷ Cash flow forecasts and cash sweeping ▷ Hedging foreign currency transactions ▷ Financing cash flow gaps INVESTOR RELATIONS ▷ Database management ▷ Managing capital calls and distributions ▷ Monitoring commitments ▷ Sending notices of capital calls and distributions ▷ Preparing management reports ▷ Waterfall calculations Private Equity Business support services

With CACEIS, asset managers and institutional investors

benefit from an organisation and

services tailored to private equity funds and their specific needs. B eyond custody, fund admin- istration and depositary bank services, CACEIS’s Private Equity, Real Estate, Securitisation (PERES) department provides busi- ness support services dedicated to real estate and private equity funds and to institutional investors investing in those asset classes. EXPERTS DEDICATED TO PRIVATE EQUITY FUNDS CACEIS’s private equity and insti- tutional clients have welcomed this new organisation structure, which of-

SYLVIANE PIGANIOL, Head of Sales Private Equiy Real Estate Securitisation, CACEIS, France

to-day investment monitoring, cash management and investor relations support to CACEIS, private equity fund managers streamline their op- erations while reducing risk, admin- istrative costs and improving investor communication and relationships. For institutional investors, invest- ments in private equity funds in- creasingly take the form of a regular succession of cash flow dependent on the life cycle of the investments, consequently managing capital calls and distributions is paramount. Other functions are just as essential, such as valuation and look-through of un- listed assets. This meets several aims: obtaining precise information for

investors’accounting and Solvency II compliance and analysing portfolio performance and risks. By provid- ing these services CACEIS makes it easier for clients to diversify their investments. Clients have online access to the data, enabling them to monitor their port- folios and performance on an ongo- ing basis. CACEIS’s PERES business support to private equity funds enables fund managers and institutional investors to meet their needs more effectively in terms of transparency, risk, per- formance and valuation while close- fitting their relationships