The boutique firm Rutsaert Legal advises on investment vehicles in Luxembourg, with a special focus on alternative investment funds and on corporate finance. Quentin Rutsaert, partner, tells us about the strengths of Rutsaert Legal.
"Trust is of the essence in business and investment funds are no exception to this principle"
LEADERS LEAGUE. You are a boutique firm that specializes in fund structuring and corporate law. Can you describe your activity in these areas?
Quentin Rutsaert. Our lawyers have indepth expertise in setting up investment funds, whether regulated or unregulated. Clients receive high level of partner attention and involvement. We help our clients by pooling our legal, finance, tax and accounting expertise. Regarding our investment funds-related work, highlights include advising a major operator of wireless telecommunications infrastructure in Europe on setting up, as anchor investor, a €1 billion digital infrastructure RAIF (Reserved Alternative Investment Fund). We also assisted an asset manager with the setup of a $500 million fintech fund and we advised another asset manager on the acquisition of a low-power network dedicated to the Internet of Things (IoT) (transaction value of €50M). Further, we advised a group of US and EU investors to pool their funds in order to acquire a real estate project in Texas (transaction value of €20M). Our second most important practice is Corporate Finance. Our significant flow of transactions ensures that our lawyers have become well-rounded corporate finance lawyers. We have, for instance, been assisting a French private wealth manager and insurance broker on the acquisition of a well-established CSSF (the Financial Sector Surveillance Commission) regulated investment firm. We also advised a crypto-currency platform with the launch of a new compartment securitising consumer loans. We also cover acquisition finance, including the documentation related to the security package and M&A transactions from term sheet to closing. From time to time, we act as bankruptcy receiver or liquidator (approved by the CSSF).
‘‘The market is growing and for many years in- vestment managers and investors have viewed Luxembourg as the place to be for investment, asset management and holding activities’’
How would you describe the Luxembourg market in the areas of fund formation and private equity?
The market is growing and for many years investment managers and investors have viewed Luxembourg as the place to be for investment, asset management and holding activities. Between 2010 and 2020 assets under management in Luxembourg held by UCIs have doubled going from €2.2bn to €4.4bn. Our typical clients are asset managers, investment firms, investors, PE firms, funds and family offices. We often team up with law firms that are not established in Luxembourg and whose clients need Luxembourg legal advice. Clients come to us with concerns of a financial and commercial nature. Our cutting edge is to translate those non-legal related concerns into legal documents. We have gained this ability through our excellent understanding of the financial, accounting and tax related challenges and opportunities faced by asset managers and investors. This ability appears to be of particular interest to our clients when working on private equity, real estate or corporate restructuring transactions.
What do clients expect from a legal firm like yours?
Clients appreciate and trust the stability and reliability of the fund industry ecosystem. Luxembourg is generally recognized as the largest financial center for investment funds in Europe and as the second-largest financial center worldwide, offering an unrivalled investment structuring toolbox. As an independent boutique law firm, clients expect from us a high level of availability and responsiveness and may rely on a high level of involvement at partner level. In terms of fees, we understand clients’ needs to anticipate our fees and they appreciate our ability to stick to agreed budgets. At Rutsaert Legal, we realize the importance of trust. Trust is of the essence in business and investment funds are no exception to this principle. Clients appreciate our firm for the quality of the relationship we strive to build.