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Private Equity | Archon
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Private Equity

It Is Coming Back – We Welcome It Back!

For many years now, Luxembourg is a primary jurisdiction for its outstanding structuring solutions in the framework of Private Equity acquisitions. Either via regulated or unregulated vehicles, a solid expertise grants to design or/and the implement sophisticated infrastructures, thanks to a favourable environment.
In this context, Archon stands up benefitting of a multi-disciplinary expertise in “turn-key” solutions – by mixing tax and legal competencies with proper deal / project management.

Archon Luxembourg infographic

The overall situation of the European market
Since 2012, Private Equity sector restarted hitting. If in 2011 global deal making, exits, fund-raising, and returns were flat, as from the year 2012, the evolution became different. This was for:

  • A new appetite for distress assets;
  • The attractiveness for trophy assets; and obviously,
  • The lack of liquidity forcing to new opportunities.

Global Buyout Deal Value (bn USD)

archon buyouts 2010-2012

Figures concerning the exits point out this significant momentum in the European buy-out market.

In 2012, exits were 322 with a global value higher than the new investment deals’ value (i.e. EUR 53.3bn against EUR 51.4bn: EUR 1.9bn more!).

On top of that, a major awareness on the risks borne by the investors as well as the importance of their prevention arose. Intensive risk management led transactions to be more transparent and high capital-intensive. The role of the banks changed significantly and their availability to financing was minimised.

In such a context, alternative funding sources are emerging as extremely interested in completing deals (e.g. debt funds). This shall result in a competition for the best PE assets to be financed.

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