NautaDutilh > Luxembourg, Luxembourg > Firm Profile
NautaDutilh Offices

2 RUE JEAN BERTHOLET
1233 LUXEMBOURG
Luxembourg
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NautaDutilh > The Legal 500 Rankings
Luxembourg > IP and IT Tier 1
The ‘knowledgeable, pragmatic and customer-focused’ team at NautaDutilh has excellent overarching knowledge across a myriad of IP and IT-related matters, including as it relates to trade mark litigation, commercial contracts and copyright matters. Team head Vincent Wellens encapsulates the firm’s wide-ranging expertise and provides ‘creative and practical’ advice to a range of clients including end-users and vendors in relation to IT outsourcing.
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Testimonials
‘The team is very responsive and available for the clients.’
‘The team is knowledgeable, pragmatic and customer-focused.’
‘NautaDutilh is a very nice law firm to work with. The lawyers are knowledgeable, open minded and customer oriented.’
‘Vincent Wellens is very knowledgeable about the areas of the law he practises in (IP, IT, competition law, data protection). He knows exactly what to do and plays with concepts like an artist juggler, without ever dropping the balls.’
‘Vincent Wellens is a pleasure to work with. He quickly understands the issues at stake and is very approachable and open for discussions. He has a good knowledge of IT matters and of the FSI Luxembourg sector.’
Key clients
Aperam
Auto1
BMW
Canal+
ENGIE
Fedex
Fendi
Goodyear
Johnson & Johnson
Luxair
Luxembourg State (CTIE) Luxembourg State (Ministry of Defence) Luxembourg State (Ministry for Interior security) Luxembourg State (Ministry for mobility)
O’Neill
POST Luxembourg
RTL
Samsonite
University of Luxembourg
Work highlights
- Assisting the French and Belgian associations of accidental Americans in several procedures to stop international transfers of personal data to the US tax authorities under the FATCA agreements between the individual EU member states and the US.
- Drafted a vast report for the Luxembourg State on how the latter can still roll out solutions in the cloud after the Schrems II judgment of the CJEU.
- Assisted on broadcasting regulations in the context of the envisaged JV between the Dutch broadcasting business of RTL and Talpa.
Luxembourg > Banking, finance and capital markets Tier 2
Leveraging its Benelux presence and also deriving a considerable amount of US and UK-based instructions, where it is aided by established Luxembourg desks in London and New York, the ‘very responsive’ team at NautaDutilh excels in handling cross-border mandates for a varied mix of banks, asset managers and corporates. The team, which is headed by Josée Weydert, was strengthened by the arrival of Sara Gerling in October 2020 from Arendt & Medernach and also includes Margaretha Wilkenhuysen, who is adept at handling a broad spectrum of banking and capital markets mandates. Counsel Ann Blaton has been pivotal to the firm’s success in engendering strong ties with UK-based clients and she heads up the firm’s Luxembourg desk from London. Jad Nader joined Ogier in July 2020.
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Testimonials
‘There is a high level of integrity throughout the entire team.’
‘I enjoy the firm’s continuing support as regards to Dutch law input to my German financing matters. They have a broad bench and are well accepted on the panels of my German clients.’
‘The team provides a personalised, yet competent approach to task and documentation.’
‘The lawyers are extremely responsive, knowledgeable and very pleasant to work with.’
‘Sara Gerling is excellent with regard to Luxembourg law. Sara speaks fluent German, which is of big support to my German lending clients.’
Key clients
Albacore Partners
Altisource Portfolio Solutions SA
Barclays Bank
Bawag Group
Credit Suisse
Deutsche Bank Securities
Goldman Sachs International
HSBC
Jefferies Finance LLC
Masonite International Corporation
Minerva Luxembourg S.A.
Morgan Stanley
Natixis
Nueva Elektra Del Milenio SA de CV
Onex Corporation
Orion Engineered Carbons
Postbank
SAF-HOLLAND S.A.
Thomas H. Lee Partners, L.P.
U.S. Bank National Association
Wells Fargo
Work highlights
- Advised Nueva Elektra del Milenio, a subsidiary of Grupo Elektra, in connection with the creation of a cross-border remittances securitisation programme and its first USD-denominated 144A/Reg S Senior Notes offering for $500m.
- Advised the underwriter banks with regard to Altice France’s issuance of $475m aggregate principal amount of its high yield notes, guaranteed by, among others, YPSO Finance S.à r.l. and YPSO Finance BIS S.A.
- Advised a mixed consortium of banks and an insurance company led by Deutsche Hypothekenbank (Actien-Gesellschaft) on the financing of four construction phases of the Heidestrasse urban quarter.
Luxembourg > Private equity Tier 2
NautaDutilh provides ‘solutions-oriented and cost-effective advice’ directly for some major international sponsors, as well as in a referral context from numerous heavyweight law firms on the buy and sell-side on major multi-jurisdictional mandates. The team’s Benelux offices also enable the team to provide a co-ordinated and seamless service on deals with a nexus to the region. Romain Sabatier ‘is pragmatic and technically strong’ and alongside Margaretha Wilkenhuysen and Yoanna Stefanova is a key member of the team.Practice head(s):
Margaretha Wilkenhuysen (corporate M&A partner); Jean-Marc Groelly (tax partner); Romain Sabatier (corporate M&A partner); Yoanna Stefanova (corporate M&A partner); Luc Courtois (investment funds partner)
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Testimonials
‘The team provides solutions-oriented and cost-effective advice.’
‘The team is very focused and helpful.’
‘Smart and proactive; good at finding commercial solutions.’
‘Romain Sabatier is pragmatic and technically strong.’
Key clients
Accelero Capital
Mérieux Equity Partners
Alchemy Partners
Oaktree
Argand Partners
Bridgepoint Services SARL
Thomas H. Lee Partners, L.P. (THL)
Darby
Silverfleet Capital
Apex Group Ltd
KBC Securities
Volta
Partners Group AG
Levine Leichtman Capital Partners
Work highlights
- Advised Thomas H. Lee Partners regarding the agreement between it, Autostore and SoftBank further to which Softbank acquired 40% of shares in AutoStore from funds affiliated with THL and EQT Private Equity, among other shareholders.
- Advised Partners Group on its acquisition of Pharmathen.
- Assisted Accelero Capital on the sale of the entire share capital of ACDC Holdings, the controlling shareholder of SUPERNAP Italia, to IPI Partners.
Luxembourg > Tax Tier 2
Regularly working alongside practitioners from across the firm's Benelux network, and also benefiting from strong ties with many high-profile international law firms, NautaDutilh has a particular focus providing the tax input pursuant to cross-border corporate (including private equity-led) and finance transactions handled by other firmwide departments. Team head Jean-Marc Groelly is at the forefront of the most significant work handled by the practice and is best-known for his tax expertise pursuant to alternative investment funds and structured finance.Practice head(s):
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Key clients
RiverRock European Capital Partners LLP
ARA Venn (formerly Venn Partners)
Accelero Capital ACDC Fund
Work highlights
- Assisted RiverRock European Capital Partners LLP to acquire, in consortium with Willis Towers Watson, a multifunctional building complex for ice skating, events and catering located in Nijmegen (The Netherlands) from T&L Vastgoed B.V.
- Assisted Accelero Capital on the sale of the entire share capital of ACDC Holdings, the controlling shareholder of SUPERNAP Italia, to IPI Partners.
- Assisted Venn Partners LLP with the set-up of the Cartesian 5 RMBS securitisation transaction.
Luxembourg > Commercial, corporate and M&A Tier 3
The ‘smart and proactive‘ three-partner team at NautaDutilh is ‘good at finding commercial solutions‘ for corporate and funds clients across a range of transactions, as well as on day-to-day operational work. The firm works particularly well with other complementary practice areas, including banking and tax, and is able to leverage the expertise of its international offices to provide a seamless service on Benelux matters. Romain Sabatier is ‘pragmatic and technically strong‘ and co-heads the team alongside Margaretha Wilkenhuysen and Yoanna Stefanova.
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Testimonials
‘They are always ready to take time with the client to achieve their target in the most efficent manner, but not foregoing quality and duty of care for the client.’
‘They not only focus on the task at hand but consider the overall impact on the client for the long term.’
‘The team is smart and proactive; good at finding commercial solutions.’
‘Romain Sabatier is pragmatic and technically strong.’
Key clients
Accelero Capital
Schwarz Group
Mérieux Equity Partners
International Automotive Components (IAC)
Alchemy Partners
Oaktree
Argand Partners
RTX
Bridgepoint Services SARL
Thomas H. Lee Partners, L.P. (THL)
Mid Europa Partners
Darby
Silverfleet Capital
Goodyear
IBM
Shell
Otis
Apex Group Ltd
KBC Securities
Volta
The Luxembourg Institute of Science and Technology (LIST)
RTL Group
Merck
Work highlights
- Provided local law advice to Schwarz Group in the acquisition from Suez by PreZero (the environmental division of German retailer Schwarz Group) of the recycling and recovery operations – excluding plastic recycling and hazardous waste treatment activities – in the Netherlands, Luxembourg, Germany and Poland.
- Advised Thomas H. Lee Partners (THL) regarding the agreement between THL, Autostore and SoftBank further to which Softbank acquired 40% of shares in AutoStore from funds affiliated with THLand EQT Private Equity, among other shareholders.
- Assisting RTL Group as lead counsel in connection with the contemplated combination of RTL Nederland’s and Talpa Network’s broadcasting and affiliated media businesses in the Netherlands.
Luxembourg > Dispute resolution Tier 3
The ‘responsive, hardworking and user-friendly’ team at NautaDutilh provides a ‘pragmatic and solutions-oriented approach’ across a range of commercial litigation and contentious insolvency. Antoine Laniez is an ‘excellent technical lawyer and provides a terrific client service’, including as it relates to international litigation/arbitration involving sovereign states. Vincent Wellens specialises in IP and IT disputes and co-heads the overarching litgation team alongside Laniez.
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Testimonials
‘The team is responsive and provides clear, crisp and commercial advice.’
‘Very professional team, dedicated and solutions oriented.’
‘Pragmatic, solutions-oriented and proactive approach.’
‘Great team – very responsive, hardworking, user-friendly and sharp.’
‘Antoine Laniez is all-round, an excellent technical lawyer and provides a terrific client service.’
Key clients
Stati
A leading engineering & construction company
Intelsat
ABN AMRO
Zurich Insurance
Leidos
Bahlsen
Engie-Cofely
Luxembourg State (ministry of public works and mobility)
Goodyear
Dussman
Volkswagen / Skoda
Aperam
Work highlights
- Assisting two foreign investors in the enforcement of a $500m arbitral award rendered against Kazakhstan and in securing attachments in Luxembourg, Belgium, the Netherlands and other jurisdictions in relation thereto.
- Assisting Zurich Insurance in a dispute regarding the Luxembourg Chamber of Commerce construction involving a dozen parties, that is pending before the Luxembourg courts.
- Representing Bahlsen in three appeal procedures before the Luxembourg administrative courts against three decisions of the Luxembourg Competition Council.
Luxembourg > Investment funds Tier 3
The ‘responsive’ team at NautaDutilh provides ‘timely and high-quality advice‘ to US, UK and EU-based fund managers structuring their Luxembourg funds and/or expanding their activities in Europe. Team head Luc Courtois ‘knows the investment services industry in Luxembourg well‘ and provides ‘business friendly’ advice, particularly in the context of UCITS.
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Testimonials
‘Their strengths and capabilities include: knowledge of the subject, keeping to timelines and availability when needed.’
‘The investment management team is responsive and provides timely and high-quality advice.’
‘Professional; technical knowledge; excellent contacts with regulatory authorities, reactivity and business oriented.’
‘Luc Courtios is very professional in his approach, knows the investment services industry in Luxembourg well, is willing to work and most of all, he is available when needed.’
‘Luc Courtois always provides business friendly legal advice that is practical and reflects market practice.’
Key clients
Danske Invest Management
Ersel Gestion Internationale
Nextam Partners
Farringdon Capital Management
Tages International
ASR
Alicanto SGR
Aqa Capital
Prime Properties
Banque Transatlantique
Goleta Fund
La Mancha
Work highlights
- Assisted Danske Invest Management with their two UCITS platforms.
- Assisted Ersel Gestion Internationale with the creation and merger of sub-funds.
- Assisted Farringdon Capital Management with the launch of a new hedge fund to be marketed to retail investors in the Netherlands.
NautaDutilh > Firm Profile
The firm: NautaDutilh is an international law firm specialising in Luxembourg, Belgian and Dutch law. The firm was founded in 1724 and is one of the largest in the Benelux. More than 400 lawyers, notaries and tax advisors work at the firm’s offices in Luxembourg, Brussels, Amsterdam, Rotterdam, London and New York.
NautaDutilh Avocats Luxembourg is a key player on the Luxembourg legal market, providing high-quality advice and services in the areas of banking and finance, corporate and M&A, investment funds, taxation, insurance and reinsurance, dispute resolution and intellectual property and ICT law. Recommended by the world’s leading legal directories such as The Legal 500 and Chambers, the firm’s team of 55 lawyers serves a range of national and international clients, from key local players to global market leaders.
Adaptive thinking is the firm’s tool of choice when it comes to staying relevant for clients. This subtle art is all about learning how to think instead of being taught what to think. It allows lawyers to deal with change, learn from new situations, and think on their feet when faced with problems. This approach enables the firm to foster long-term client relationships.
Areas of practice
Banking and finance: NautaDutilh is recognised as a leading banking and finance law firm. Its team has outstanding expertise in the full range of banking and finance services, including capital markets (both debt and equity), structured finance, securitisation structures, financial products, securities legislation, international finance, leveraged lending, acquisition finance, fund finance, and insolvency and restructuring. In the area of debt capital markets, the team has extensive experience dealing with a wide range of complex high value senior and high-yield note programmes as well as covered bond issues. On the equity side, cross-border IPOs involving Luxembourg issuers are an area in which it is particularly strong.
Corporate and M&A: NautaDutilh handles all aspects of corporate M&A and private equity deals including (leveraged and management) buy-outs, public to-private transactions, exits through IPOs, secondary and other private transactions, and acquisition finance. The firm is regularly involved in major multi-jurisdictional deals, acting for investors, finance providers, sellers and management, complex migrations, mergers and internal reorganisations for multinational groups.
Dispute resolution: NautaDutilh is the law firm of choice in the Benelux for all types of high-stakes commercial litigation and arbitration. It advocates a multi-disciplinary approach and has an excellent track record representing clients at all levels of the judicial system. It has handled cases involving professional liability, intellectual property, insurance, commercial contracts, restructurings in the context of and outside bankruptcy, and class actions.
Investment funds: NautaDutilh has extensive experience advising on all aspects of investment funds, including fund structuring, regulatory compliance, investor negotiations and fund due diligence (when acting for the LP side). Its team advises fund managers and promotors on the structuring and launch of RAIFs, SIFs, SICARs, SCSs or SCSps without a wrapper and UCITS.
IP and ICT: NautaDutilh’s IP and technology team assists clients in all areas of intellectual property law (in particular trademark, copyright, patent, design and trade name matters), advertising, unfair competition and trade secret disputes, as well as in IP and technology-driven transactions and with the negotiation and drafting of IT and outsourcing contracts.
Taxation: taxation is a key practice of NautaDutilh. Its tax team has a strong transactional focus and provides invaluable support to the firm’s other departments. The team advises on all aspects of Luxembourg and international tax law, with a particular focus on the tax aspects of M&A, structured finance (securitisation), real estate and private equity deals.
Main Contacts
Department | Name | Telephone | |
---|---|---|---|
Taxation | Jean-Marc Groelly | jean-marc.groelly@nautadutilh.com | +352 26 12 29 95 |
Dispute Resolution | Antoine Laniez | antoine.laniez@nautadutilh.com | +352 26 12 29 17 |
Corporate and M&A, Insolvency and Restructuring, Private Equity | Romain Sabatier | romain.sabatier@nautadutilh.com | +352 26 12 29 47 |
Investment Funds | Luc Courtois | luc.courtois@nautadutilh.com | +352 26 12 29 74 21 |
Intellectual Property, Information and Communication Technology, Litigation and Arbitration, EU and Competition | Vincent Wellens | vincent.wellens@nautadutilh.com | +352 26 12 29 34 |
Banking & Finance, Capital Markets | Josée Weydert | josee.weydert@nautadutilh.com | +352 26 12 29 97 |
Corporate and M&A, Capital Markets, Insolvency and Restructuring, Private Equity | Margaretha Wilkenhuysen | greet.wilkenhuysen@nautadutilh.com | +352 26 12 29 32 |
Corporate and M&A, Private Equity | Caroline Notté | caroline.notte@nautadutilh.com | +352 26 12 29 91 |
Banking & Finance, Capital Markets | Sara Gerling | sara.gerling@nautadutilh.com | +352 26 12 29 74 52 |
Lawyer Profiles
Photo | Name | Position | Profile |
---|---|---|---|
![]() | Luc Courtois | Partner | View Profile |
![]() | Sara Gerling | Partner | View Profile |
![]() | Jean-Marc Groelly | Partner | View Profile |
![]() | Mr Antoine Laniez | Partner | View Profile |
![]() | Caroline Notté | Partner | View Profile |
![]() | Romain Sabatier | Partner | View Profile |
![]() | Vincent Wellens | Partner | View Profile |
![]() | Ms Josée Weydert | Partner | View Profile |
![]() | Margaretha (Greet) Wilkenhuysen | Partner | View Profile |
Staff Figures
Number of lawyers : 433 At this office : 55Languages
Dutch English French German Luxembourgish Italian Romanian Russian ArabicOther
Other offices : Amsterdam Other offices : Brussels Other offices : London Other offices : New York Other offices : RotterdamDiversity/Community
At NautaDutilh, we aim to meet our clients’ needs, contribute to their success and create an inspiring and challenging working environment for our employees. We embrace independence and integrity towards our clients, employees, stakeholders and society at large.
Taking responsibility for the effects of our activities from a social, ecological and economic perspective is a fundamental part of how we think and act. We are firmly rooted in society and actively contribute to the way it functions, based on our specific competences and our diversity, in a way that is true to our character. That same mission was of equal importance to one of our founders, Tobias Asser, who won the Nobel Peace Prize in 1911.
Today, we are involved in and support a wide range of activities, such as the Lawyers for Lawyers Foundation where we sit on the board, and are the exclusive legal advisers to the SI² fund, which invests in innovative, socially responsible companies. We also participate in Pro Bono Connect and are among the 13 law firms that support the public interest clearinghouse. We set aside time to contribute to new legislation and regulations through consultation procedures, and encourage the relatively large number of academics in our ranks to take part in them. In addition to various internal initiatives, many of our people are active in political, social and/or cultural activities and events outside of work.
Sustainability
Sustainable development has always been high on NautaDutilh’s list of priorities. The Think Green Committee has played a key role in fostering environmental awareness within thefirm since 2004. The committee’s aim is to raise environmental awareness through actionswhich involve everyone, such as the reduce of paper and energy consumption and the useof public transport or bike.
Diversity Committee
We are firmly convinced of the benefits of a diverse workforce. It has been on our priority list since 2001. A more active approach was taken in 2005 by the establishment of a firmwide Diversity Committee. Together with other law firms, we’ve also created the Women in Law (WIL) Program, a training program for young female lawyers intended to improve their soft skills and provide them with the tools they need to succeed in the legal profession.
Children and Law
We are especially dedicated to playing an active role in society for children who have poor access to ‘law’. One of the organisations we support in this light is KidsRights, which promotes the well-being of vulnerable children across the world and advocates for the realization of their rights. We also support JINC, giving young people a better chance for the future, and introduce children from underprivileged neighbourhoods to the concept of ‘law’ at the IMC Weekend School. We also provide legal services the Kindertelefoon (Child Helpline) on a pro bono basis.
US Capabilities
NautaDutilh’s New York office advises clients on the Luxembourg, Dutch and Belgian legal aspects of US-originated or US-coordinated cross-border banking, finance and corporate M&A transactions. We have excellent capabilities in the full range of banking and financial services, including (debt and equity) capital markets, structured finance, securitization structures, financial products, securities legislation, international finance, leveraged lending, acquisition finance, fund finance, and insolvency and restructuring. The clients of our New York office are mainly US-based financial institutions, asset managers, large and mid-sized corporates, private equity firms and fund sponsors. We also work closely with top US law firms, with which we have developed strong ties, on complex cross-border matters for their clients.
We distinguish ourselves by:
- a primary focus on US transactional practice;
- an in-depth understanding of the challenges facing our clients in the US business and legal environments;
- availability for our clients in US time zones;
- a full-service corporate, finance and capital markets team with tax and administrative support in New York, backed by specialists and additional staff in our Benelux offices, to meet our client expectations and deadlines;
- serving as a gateway to full-service expertise in Luxembourg, the Netherlands and Belgium.
Many of our Luxembourg banking and finance associates rotate through the New York office to obtain relevant “on the ground” experience in US transactions. Our lawyers are active members of key Luxembourg-US organisations for financial and legal sector professionals such as the American Chamber of Commerce in Luxembourg (Amcham), the American Bar Association (ABA), the New York City Bar Association and the New York State Bar Association, which allows them to stay informed of upcoming legislative and regulatory changes. Our lawyers are appreciated for their availability, experience, solution-driven attitude and proven legal expertise.
We advocate a multi-disciplinary approach and have an excellent track record representing US financial institutions and corporates. Representative transactions for our US clients include:
- assisting international banks and direct lenders with leveraged lending (secured cross-border credit facilities), ABL transactions, subscription line financing transactions and structured finance;
- advising major investment management firms on regulatory issues and the setting up of Luxembourg structures;
- assisting international banks and corporates in major acquisition finance deals;
- advising international banks and multinational financial services companies on regulated M&A, governance, financial and corporate issues;
- assisting issuers and underwriters with the issuance and listing of bonds.
Press Releases
NautaDutilh appoints three new partners
1st April 2021We are pleased to announce the appointment of three new partners as of 1 April 2021. These appointments further strengthen several of our practice groups, including our Data, Cybersecurity & IT law team, our Banking & Finance team and our Corporate M&A team. With a new partner appointed in each of our three home jurisdictions, NautaDutilh underlines its position as a leading Benelux law firm.
NautaDutilh welcomes new investment funds partner Luc Courtois
18th February 2020 On 3 February 2020, NautaDutilh strengthened its Luxembourg funds practice with the arrival of investment funds partner Luc Courtois. Prominent in his field, Luc has more than 25 years' experience on the Luxem-bourg legal market, with a strong focus on investment management. His practice covers the full range of Luxembourg-based UCITS and alternative funds as well as all legal aspects of investment funds, man-agement companies and their activities.NautaDutilh Avocats Luxembourg establishes Insurance and Reinsurance practice
13th February 2019NautaDutilh is pleased to announce the establishment of its Luxembourg Insurance and Reinsurance practice, another big step in the firm's ongoing expansion. The new practice group reflects increased client demand for legal services in the insurance field.
NautaDutilh opens Luxembourg Desk in New York
5th October 2017NautaDutilh expands its New York office with a Luxembourg desk headed by Jad Nader, who recently has been named local partner. The firm's New York satellite team advises US clients on Dutch, Belgian, and Luxembourg law, particularly in regard to cross-border banking and finance and corporate M&A transactions. The arrival of a Luxembourg partner will increase the firm's capacity to handle Dutch and Luxembourg matters locally.
Outsourcing in the Financial Sector
13th April 2017NautaDutilh Luxembourg is organising a breakfast seminar on outsourcing in the financial sector, which will take place on Wednesday, 10 May 2017.
NautaDutilh defended Fendi against Coach
20th March 2017NautaDutilh Avocats Luxembourg defended the interests of luxury fashion house Fendi in proceedings against US-based Coach for infringement by the latter of Fendi's EU design rights in its Peekaboo handbag.
Breakfast Seminar – The financing of Luxembourg Investment Funds – 6 April 2017
20th March 2017NautaDutilh Luxembourg is organising a breakfast seminar on the financing of Luxembourg investment funds, to be held on Thursday, 6 April 2017 at the Waldorf Hilton.
NautaDutilh assisted Raizen Fuels Finance S.A.
17th February 2017NautaDutilh assisted Raizen Fuels Finance S.A., as issuer on its USD 500 million 5.3% senior notes offering which successfully closed on 20th January. The issuer is part of the Brazilian Raizen group, the world largest individual producer of sugar cane. The Raizen group also operates a network of more than 5,800 Shell-branded stations in Brazil.
Legal Developments
Sustainable Investing as a Driver of Change
21st April 2020 A disruptive cultural shift is driving change in the financial industry. Investors and new sources of deals are redesigning the fundamentals of the asset management business.In the asset management sector, trends have generally evolved to keep pace with the need to identify new ways of delivering alpha, as investors have traditionally been focused mainly on return. Today, however, investors are increasingly concerned with the social impact of their investments.The communication on the European Green Deal recently issued by the European Commission is representative of this changing environment. Indeed, the EU aims to become climate neutral by 2050. On a more global scale, similar sentiments were voiced at the last UN Climate Change Conference (COP 25) in Madrid. Initiatives at the European and national levels focusing specifically on the financial industry are also being taken, such as Regulation (EU) 2019/2088 on sustainability‐related disclosures in the financial services sector. In the Grand Duchy of Luxembourg, there is already a legal framework for green covered bonds linked to renewable energy projects; in addition, a new bill (no. 7433) on sustainable finance aims to introduce more favourable rules for inter alia funds with environmental, social and governance (“ESG”), green or similar investment strategies. Finally, the Luxembourg Stock Exchange has issued guidelines for reporting on ESG aspects that address “the specific scope and needs of its three main stakeholders: companies, issuers of sustainable debt instruments, and asset managers active in sustainable & responsible investment funds”.The real economy is influencing the financial economy and forcing portfolio managers to develop products that are more in line with investors’ expectations. Unless they have a positive impact on, for example, the environment, the healthcare system or access to affordable housing, strategies will not be considered in line with current trends, regardless of whether they take a short or long approach, relate to a correlated or uncorrelated investment approach or public or private debt.There is indeed growing demand for the industry to participate in resolving questions and respond to real-life needs.ESG investing takes into account both ethical factors and financial elements in the decision-making process and has become increasingly common worldwide in recent years. Once a niche approach thought to come at the expense of returns, such strategies have proven that they can be market-beating. As ESG momentum builds, it is argued that companies can no longer afford to ignore ESG ratings. Last year, record amounts were invested in so-called sustainable funds.Within the overarching category of sustainable investing, strategies include ESG integration, socially responsible investing and impact investing. In brief, the primary factor in ESG integration is still financial performance, while impact investing is meant to maximise, with a quantifiable impact, social reach. Socially responsible investing can be considered to fall somewhere in the middle.The first priority for ESG integration strategies remains financial performance, while impact investing focuses on achieving the greatest possible social reach.Performance measurement is coming under increasing scrutiny by investors, and asset management firms need to be able to report on financial and social results in a transparent manner.Digital transformation In the financial sector, digital transformation tops the list of priorities of a majority of financial institutions and actors. The integration of digital technologies into all areas of business, including human resources and finance, entails a cultural shift and requires organisations to constantly question themselves and the way they operate and deliver value to customers. In practice, we may expect increasing adoption of digital operating models, including integrated cross-functional teams, better use of artificial intelligence and machine-learning processes, greater reliance on the public cloud, encompassing a more detailed legal and regulatory framework, and finally continuous investment in data storage in order to synthesise data and facilitate their use.Luxembourg, the frontrunner in anticipating and driving changeThe Luxembourg financial sector is already investing in new standards and processes and revamping its service offering in order to adapt to the rapidly changing landscape. One of the keys to the success of the Luxembourg financial sector is the speed at which participants (i.e. service providers, credit institutions, auditors, lawyers and authorities) invest in and purchase new skills and technologies to ensure they are seen as modern, mature and competent business partners by the international markets.As has been the case in the past for other strategies, knowledge and expertise in new areas of investment and services, to anticipate and drive change, will enable the Grand Duchy to remain a location of choice for investors and asset managers.Law firms need to consider all aspects of digital transformation as well as ESG issues and impact-investing asset classes and understand the various components and models in order to be able to assess them adequately in the due diligence process and ensure that they are reflected in contractual and legal documentation.As global front-runners, Luxembourg financial sector players have not only an opportunity but also a duty to stay on top of these trends. Understanding ESG and digital transformation entails implementing appropriate processes within each organisation and constantly innovating by adopting an open-minded, ESG-oriented approach in all areas of business.Comparative Guides
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Luxembourg: Lending & Secured Finance
Published: April 2022
Authors: Nicolas Bonora Audrey Derep
This country-specific Q&A provides an overview to Lending & Secured Finance laws and regulations that may occur in Luxembourg.
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Luxembourg: Mergers & Acquisitions
Published: April 2022
Authors: Margaretha Wilkenhuysen Romain Sabatier Caroline Notté Aline Nassoy
This country-specific Q&A provides an overview to Mergers & Acquisitions laws and regulations that may occur in Luxembourg.
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