Since TMF Group foundation in the late 80s, the company has provided support to a number of local and international companies, via its Luxembourg office. Could you tell us a little about the evolution of the brand’s presence in this country over the years?
Gaelle Attardo (GA) Since the foundation of TMF Group, we have experienced significant growth. Today, our Luxembourg office is home to more than 350 professionals, each bringing their unique expertise to serve our diverse client base. We operate in over 86 jurisdictions, with more than 127 offices, +11k proffessionals, and provide on-the-ground regulatory and administration services to our +15,000 clients, including but not limited to top-tier financial institutions, asset managers, private equity and real estate investors, multinationals and family offices, worldwide. Our growth has been driven by our commitment to understanding the unique needs of our clients and delivering tailored solutions that help them navigate the complexities of international business.
David Burgos (DB), We offer a comprehensive suite of services and we are delighted with our global footprint. TMF Group provides an extensive array of services tailored to meet the unique needs of companies operating within the dynamic and highly regulated Luxembourg business environment.
TMF Group is recognized for offering a wide range of services. Specifically in Luxembourg, what are the main services offered by the brand and how do they meet the particular needs of companies operating in this market?
DB Focusing on our services, as fund administrator, for example, our specialist team in Luxembourg provides all Central Administration services required to administer fund structures – from setup to liquidation. Complementary to that and alongside with our Depositary services department and our Alternative Investment Fund Manager (AIFM) related services provided through TMF Fund Management, an affiliated company of TMF Group, add value to our fully integrated solution for alternative investment funds structures such as Private Equity, Real Estate, Infrastructure, Private Debt and Venture Capital. Our Loan Administration Services, alongside with our complete offer related to Structured Finance and Capital Markets structures play an important role in facilitating transactions in the world’s leading financial centers. HR and Payroll services complete the picture of our extensive capabilities.
GA Fund management and fund administration services are particularly noteworthy. We offer a full range of fund services including fund setup, management, administration, accounting, and investor and shareholders servicing. Our team of experts ensures that funds are set up correctly, administered efficiently, and comply with all relevant and applicable regulations. We also provide detailed accounting services to keep track of fund performance and provide transparent reporting to investors.
The TMF Luxembourg team is known for its high qualifications in international management, accounting, legal, among others. To what extent does TMF Group ensure that its local team is always up to date and prepared to deal with the complexities of the Luxembourg regulatory environment?
GA At TMF Group, we place a high priority on continuous learning and development. Our Luxembourg team regularly participates in training programs and industry events to stay abreast of the latest regulatory changes and best practices. This ensures that we are always prepared to provide our clients with the most accurate and up-to-date guidance.
And it is not just about numbers and regulations, it is also about real engagement as continuous learning and development are the cornerstones of our philosophy. We are always on the lookout for the next informative seminar or the upcoming webinar that could give us the edge in regulatory wisdom and industry best practices.
DB Our commitment to staying ahead of the curve isn’t limited to formal training programs. We believe in the power of building up relationships and what better way to exchange valuable insights than over a professional event? It is at these gatherings where the ties are loosened, and the real talk happens.
So, whether it is through a seminar that unpacks the complexities of the latest regulations, a webinar that showcases cutting-edge industry trends, or a casual meet-and-greet event, we ensure that our team is equipped with knowledge.
GA At TMF Group we want to serve our clients at our very best, and we are happy to provide them with valuable insights blended with a human and bespoken approach. Our aim is to provide our clients with a flawless service and we believe in three service excellence behaviors: procativeness, responsiveness, and high quality service.
Luxembourg is one of the main fund administration centers in Europe. How is TMF Group positioned to offer additional support for local requirements in this sector? What are the main challenges and opportunities that the company identifies in this market?
DB As one of Europe’s leading fund administration centers, Luxembourg presents a unique set of challenges and opportunities. TMF Group is well-positioned to support clients in this sector, thanks to our deep understanding of local regulations and our extensive experience in fund management and fund administration. We see the ongoing digitalization of the sector and the increasing focus on ESG factors as key trends shaping the future of fund administration in Luxembourg.
GA Furthermore, Luxembourg is not only significant hub for fund administration, with a reputation that extends globally but, according to public sources, it is the second largest investment funds center in the world, trailing only the United States, with Luxembourg domiciled funds representing over €5.5 trillion in assets (Assets Under Management), and distributed in more than 80 countries, with a particular focus on Europe, Asia, Latin America, and the Middle East.
DB Looking at the challenges and opportunities of the markets we are operating in, we are witnessing a paradigm shift as a result of the riase of the ESG. Investors are increasingly aligning their portfolios with their values, and we at TMF Group are facilitating this transition.
Moreover, the fintech revolution is reshaping the financial services industry, and fund administration is no exception. We leverage cutting-edge technology to streamline operations, enhance data security, and provide real-time insights. Our digital platforms empower clients with tools for better decision-making, while our commitment to innovation ensures we remain at the vanguard of the sector’s digital transformation.
GA As we look to the future, TMF Group remains committed to embracing these trends and harnessing them to deliver unparalleled service. The digitalization of the sector and the increasing focus on ESG are not just trends; they are the new benchmarks of excellence in fund administration. In Luxembourg, a hub of financial innovation, TMF Group is poised to lead the charge.
With a sophisticated regulatory environment and a robust financial market, Luxembourg attracts many global companies. So how do you assess the current business environment in the country? What recent trends or changes do you see as having an impact on your clients’ operations?
DB Luxembourg is an attractive destination for global companies due to its sophisticated regulatory environment and robust financial market. We see a positive business environment in the country, characterized by strong economic performance and a pro-business regulatory framework. However, the increasing complexity of regulations and the rapid pace of technological change are trends that could impact our clients’ operations.
GA We need to mention the well known Luxembourg reputation and as a triple-A rated financial center is not just a testament to its economic stability but also a beacon for global companies seeking a reliable and advantageous business climate. The country’s sophisticated regulatory environment is a cornerstone of its international acclaim, providing a secure and transparent framework that is essential for maintaining a stellar reputation in the global market.
The importance of robust regulation cannot be overstated, especially when it comes to institutional investors. These entities look for jurisdictions that not only promise financial returns but also offer a commitment to regulatory excellence. Luxembourg regulatory framework is designed to protect investors and ensure fair market practices, making it a preferred destination for those who value integrity and security in their investments.
DB Luxembourg continues to thrive as an international reference point for financial services, its ability to adapt to the rapid pace of technological change, particularly in the fintech sector, further solidifies its position as a forward-thinking hub. This agility is crucial as we navigate the complexities of an evolving market landscape, ensuring that our clients are well equipped to face the challenges and seize the opportunities that lie ahead.
In conclusion, Luxembourg’s blend of robust regulation, strong economic performance, and technological innovation creates an environment where businesses can flourish. TMF Group recognizes these attributes and is poised to leverage them to the advantage of our clients, ensuring that they remain at the forefront of their respective industries.
Which sectors or industries in the country offer the greatest opportunities for TMF Group’s clients? How does the company help them maximize the various benefits of this market?
GA We see significant opportunities for our clients. TMF Group helps to maximize these opportunities by providing expert support, from setting up operations in Luxembourg to managing regulatory compliance and optimizing business processes.
Our expertise ensures a seamless and successful integration into this dynamic market.
DB Also, we are pleased to announce the recent launch of the TMF Group Global Business Complexity Index (GBCI) 2024 offering a comprehensive analysis based on 292 indicators, shedding light on the intricacies of doing business across borders and the varying degrees of complexity in 79 jurisdictions.
GA In line with the insights from GBCI 2024, we recognize the burgeoning opportunities for our clients, particularly in the realms of financial services, technology, and sustainable finance. These sectors are at the heart of global business evolution, and TMF Group is at the forefront, providing expert advice and unparalleled support.
We are very proud of our GBCI 2024, and we understand is more than just a report: it is a testament to our commitment to simplifying the complex nature of global business. As we embrace the challenges and opportunities of rethinking globalisation, TMF Group remains your trusted partner in turning these insights into actionable strategies for cross-border success.
Finally, with an eye to the future, what are TMF Group’s main goals and innovations for the Luxembourg market? Are there any new services or expansions planned that might interest current and potential clients?
DB Looking ahead, TMF Group is poised for growth, driven by innovation and a steadfast focus on client needs. Our plans involve pioneering solutions that will add significant value for our clients in Luxembourg. The success of our clients and buiness partners is ours, and is our priority.
GA TMF Group prides itself on delivering flawless service, strives to provide seamless, efficient, and high-quality services to all our clients, ensuring their operations run smoothly and successfully.
Our passion is the service to our clients, and to demonstrate this, we have even assembled dedicated teams, serving different regions and staffed by native speakers. This strategy not only fosters effective communication but also cultivates a deeper understanding of our clients’ unique needs. Our commitment is unwavering: deliver exceptional service tailored to the distinct requirements of each client, ensuring their satisfaction and success.
DB Actually, we understand that our clients are at the heart of everything we do and our ambition is to harness cutting-edge technology to enhance our service offerings, while maintaining the personal touch that distinguishes our business. We believe that the integration of technology does not mean losing the human connection; rather, it enables us to deliver services with greater efficiency and precision.
As we look to the future, we are mindful of the growing importance of Environmental, Social, and Governance (ESG) criteria. Our commitment to these principles is unwavering, and we aim to embed them deeply within our business practices.
GA Furthermore, our AIFM is a testament to our dedication to regulatory excellence and our ability to operate on a global scale. It was particulary exiting this year to participate in the LPEA Private Equity Seminar held in Lisbon. The event was a resounding success, and we were thrilled to see the strong interest shown by the public in our services and our perspecive for the future and for the market, we had the opportuntiy to talk about our succesful solutions. our Alternative Investment Fund Manager (AIFM) services embody our dedication to adaptability and excellence. By delegating portfolio administration to TMF Group, clients benefit from our comprehensive support, which includes risk management, regulatory reporting, and capital raising strategies. Our AIFM services are designed to provide clients with the freedom to focus on their core investment activities, secure in the knowledge that their administrative responsibilities are in experts´ hands.
DB We also recognize that many of our clients seek centralisation and consolidation of services and providers for streamlined operations and governance. Given our global footprint and our comprehensive offer, integrated solutions, we are in the best position to respond to these ambitions.
