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Alan Dundon (L3A): adapting to promote the growth of alternative investments

 

L3A's mission is to promote the interests of its alternative service provider members and to actively contribute to the continued development of Luxembourg as an investment and operational centre of choice for global alternative investment managers.

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What are the concerns of L3A members at the moment?

Our members' concerns are largely driven by those of their asset management clients. As in any industry, the list is long, but a few seem particularly relevant in the current context. Firstly, the importance for Luxembourg of promoting a sensible implementation of new regulatory and tax standards, with ATAD III being a clear example of the members' priority in 2023. Secondly, the need for Luxembourg’s alternative administrators to continue to attract talent here, but also to build sensible operating models to ensure a growing volume of business is managed efficiently on behalf of their clients. Finally, the growing importance of ESG, and the need to provide investors with data and reports that comply with regulatory requirements and beyond, will be at the forefront of our members' thinking in 2023 and beyond.

 

"We are fortunate to be at the heart of a well-developed industry that continues to grow strongly."

How does the L3A promote the interests of its alternative trustee members?

The L3A promotes the interests of its members in several ways. Firstly, the recent creation of four standing committees - Operations, Tax and Regulatory, HR and Events and Communication - will provide a platform for professional members to actively contribute to matters of relevance and interest to our sector. These committees will review and make recommendations to shape our sector more effectively and efficiently. They will support important lobbying efforts in areas that have a direct impact on our members, their clients and the surrounding ecosystem. Secondly, the introduction of a new category of associate members will broaden the debate and enrich the content of these committees. Finally, we will continue to communicate our story and issues through an improved website and increased use of social media, particularly on LinkedIn which we invite readers to follow.

 

 

What challenges and opportunities do you see for the future?

I see mostly opportunities! We are fortunate to be at the heart of a well-developed industry that continues to grow strongly despite current macroeconomic conditions. Data provider Preqin forecasts a slowdown in growth to around 11.9% per annum between 2021 and 2027 (compared with 19.2% per annum between 2018 and 2021). We are also seeing a lot of discussion around the "democratisation" of alternative assets, offering access to a wider and more retail-oriented client base. The new ELTIF II regulation is a good example of support for this at EU level. This growth and broadening of the investor base will undoubtedly challenge our members to find more efficient and digital solutions in the years to come, a challenge that our industry has consistently delivered on, and will continue to do so.

 

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