- Invest Industrial is an Italian private equity firm that acquired motorcycle manufacturer Ducati in 2012. - Ducati was struggling financially and had gone through multiple changes in ownership in recent years. - Invest Industrial implemented a turnaround strategy for Ducati that focused on product innovation, international expansion, and improving manufacturing efficiency. - Several new Ducati models have been successful and the company has expanded its dealership network, helping Ducati return to profitability under Invest Industrial's ownership.

1. Invest Industrial:
Turning
Ducati
around
V#1
capitalThe magazine of the Luxembourg Private Equity & Venture Capital Association

2. #1 – capitalV – 3
Content
The magazine of the Luxembourg Private
Equity & Venture Capital Association
Editorial: Paul Junck / Hans-Jürgen Schmitz
Conception & coordination: 360Crossmedia
Artistic Director: Frank Widling
Cover photo: © Ducati
Print run: 2.000 copies
capitalV
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5. Editorial
Welcome to capitalV
6. Case study
Metrocab and Citeecar: vehicles of change!
8. Innovation
Luxembourg: open to partnership
10. Interview
Private Equity in Luxembourg: Three steps ahead
12. Cover story
Invest Industrial: Turning Ducati around
16. Regulatory
Playing the AIFM music in the right tone:
the role of professional associations
18. Tax
Private equity in Luxembourg: what about the
current tax environment?
20. Profile
Advent Venture Partners –
Life Sciences’ venture: our core activity
23. Focus
The EuVECA Label New Opportunities ahead for
Venture Capital and Luxembourg
24. Gaming
Kabam: Paving the way for a digital future
27. Culture
Philharmonie Luxembourg: Sounds perfect!
28. Social clubs
Networking in Luxembourg
30. LPEA in Brief
ABOUT LPEA
Disclaimer : To the fullest extent permissible under applicable law,
LPEA does not accept any responsibility or liability of any kind,
with respect to the accuracy or completeness of the information
and data from this documentation. The information and data
provided in this documentation are for general information
purposes. It is not investment advice nor can it take account of your
own particular circumstances. If you require any advice, you should
contact a financial or other professional adviser. No material
in this documentation is an offer or solicitation to buy or sell any
professional services, financial products or investments.

3. #1 – capitalV – 5
Dear Private
Equity
professionals,
T
he SuperReturn conference
in Berlin is a great opportunity
to learn about the latest trends
of our industry and meet
business partners.
At this occasion, the Luxembourg Private
Equity and Venture Capital Association
is proud to present the first edition
of «capitalV».
We trust this magazine will help
you acquire a better knowledge
of Luxembourg’s expertise
in private equity.
Kindest regards
Paul Junck, Managing Director
Hans-Jürgen Schmitz, Chairman
Luxembourg Private Equity
& Venture Capital Association
Editorial

4. The place cars traditionally have in towns
is being challenged. We look under the bonnet
of this phenomenon with Jean-Marc Gales, CEO
of the Clepa Association of European Automotive
Suppliers.
#1 – capitalV – 76 – capitalV – #1
regulating, like on social networks. For example, the next user
tells the network if the previous person didn’t put in any pet-
rol. Mangrove Capital Partners has launched this project in
Berlin, which is soon set to be the first city “equipped” with
200 cars. The first 1,000 rentals have worked very well.
How does Citeecar differ from Metrocab?
It’s completely different. 2 companies used to produce
the famous London taxi cabs. Metrocab was bought out
by Kamkorp in the early years of the last decade. This firm
has developed a specific green concept whereby the
taxis are fitted with a small petrol engine coupled with a
generator which produces electricity. This means that
CO2 emissions are barely 50 g/km, whereas they are in
excess of 200 g/km for a traditional taxi. Let’s not forget
that we’re talking here about a 7-seater vehicle with room
for a wheelchair. Mangrove Capital Partners got involved in
this project at the end of 2011. In excess of 300 Million
sterling were invested by Kamkorp into a fully integrated,
highly fuel efficient and optimized range extended electric
drivetrain. The target market includes all of the world’s major
cities.
www.citeecar.com
www.mangrove-vc.com
Why do you think projects which are
changing the place cars traditionally have
in towns are flourishing?
Citeecar and Metrocab are a response to the current major
trends we are seeing in the automobile industry. The first
phenomenon is that more and more people are living in
towns. In fact, 50% of the population live in towns today, with
the figure set to rise to 60% within 10 years. A knock-on
effect is the pressure this is putting on the environment.
Mayors are struggling to limit pollution in their towns. There
are 500 vehicles to every 1,000 inhabitants here in Europe,
compared with 30 in China and 9 in India. The final point is
the drain on our time. In Europe, the equivalent of €80 billion
is wasted in traffic jams.
The Citeecar concept has recently been
launched in Berlin. Can you explain what
it’s all about?
Citeecar aims to reduce traffic jams by enabling people to
rent a car. A “host” receives a car for free and provides a park-
ing space. In return, they promise to lend the vehicle for a
certain number of hours per day. For users, the subscription
costs barely €5 per month, and the rental cost is €1 per hour
plus €0.2 per kilometre. The car can be opened using a card,
and is always returned to the same place. The system is self-
Case Study
Metrocab and Citeecar:
vehicles
of change!
Jean-Marc Gales,
CEO of the Clepa Association
of European Automotive Suppliers
Metrocab.
Citeecar.
©DR
©DR

5. Draft bill 6471 not only proposes to implement AIFMD into Luxembourg
law, but also to modernise its partnership law. Luxembourg thereby
adds a further tool to its product offering of an attractive fund and
joint venture jurisdiction.
“Yes! Luxembourg
is open to partnership”
#1 – capitalV – 98 – capitalV – #1
Luxembourg:
open to
partnership
What the reform is really about
The Luxembourg partnership draft bill is less about innova-
ting and much more about modernising the existing limited
partnership legislation. The draft bill is further all about legal
certainty.
The common limited partnership (clp)
The draft bill reforms the existing Luxembourg limited par-
tnership (société en commandite) regime. The basic principle
is to confirm that this form of partnership benefits of a maxi-
Innovation
Interests in a clp may be subdivided into units, but do not have
to. Classical partnership accounting permits to reflect the
limited partners’ accrual of profits or losses from the limited
partnership activity. The allocation of profits and losses is in
accordance with what the limited partnership agreement
provides (to allow, f.i., excused investors or default provisions
to fully apply). Finally partnership interests may, pursuant to
the draft bill, be more freely transferred than was the case so
far if the limited partnership agreement so allows.
The special limited partnership (slp)
The draft bill then proposes what is probably the biggest
innovation in the draft bill: a partnership without legal perso-
nality. The reason to have such slp is that in a lot of jurisdic-
tions partnerships do not have legal personality and certain
regulatory, tax and/or legal conclusions are derived there
from. The draft bill proposes a much more flexible and confi-
dential reporting of financial information for the clp than for
the slp. All other rules briefly described for the clp equally
apply to the slp.
The partnership limited by shares (sca)
While the accent is clearly put on reforming the limited par-
tnership legislation, the draft bill proposes for partnerships
limited by shares to replicate the management structure for
limited partnerships.
* Partner Corporate Law, Mergers
& Acquisitions, Arendt & Medernach
mum level of contractual freedom. Only the voluntary or invo-
luntary omission of rules on certain items will be regulated by
default provisions. Otherwise the partners’ joint intent
prevails.
Other important features are: The liability of the limited par-
tners remains limited to their contribution to the partnership,
even if they do participate in the internal consultation or,
even, decision making process through advisory committees
or other. A clp may be managed by specially appointed mana-
gers who are not necessarily general partners as well.
Laurent Schummer,
LPEA Member*
©360Crossmedia/Fotolia

6. Interview
The metaphor “regulatory tsunami” has often
been used when commenting on the arrival of
AIFMD and other regulatory initiatives, but,
unlike the massive wave, these regulations
have no intention of receding.
#1 – capitalV – 1110 – capitalV – #1
with the AIFMD Directive. Luxembourg has adopted a pro-
active approach to implementation. The transposition law is
on the table and is expected to be adopted in the coming
three months. The CSSF (as the financial industry supervi-
sory authority) has a long-standing experience in product
supervision and has geared up to embrace the arrival of
AIFMs seeking approval.
Finally, Luxembourg has recognized the need to separate the
UCITS world from Private Equity. As a case in point, servicing
the needs of the Private Equity industry does not require a
banking license. The status of a (specialized) professional
service provider has been created and service firms are cur-
rently implementing their offerings.
Level playing field
Luxembourg has developed tremendous expertise in Private
Equity over the past decade. The presence of a large number
of international players is only one of many indicators attes-
ting to this.
Luxembourg’sreputationofstabilityintermsofpolitics,lawand
tax, has contributed to this considerably. This being said there
is little room for complacency. Promoters have alternatives as
AIFMD is being implemented across Europe and other finan-
cials centers are gearing up at similar speed. Leveraging its
UCITSexpertise,maintainingitsattributesofstabilityandflexi-
bility, combined with building the industry specific execution
capabilities is a widely shared commitment in Luxembourg to
establish a leading position as Europe’s onshore domicile of
choice for Private Equity.
* Co-Founder and Managing Partner, Mangrove Capital Partners
W
hile, as a practitioner, I still grapple with the
tangible benefits that AIFMD seeks to
achieve, its implementation is a manageable
task and the structural and financial impact,
while not negligible, is not going to be unsur-
mountable. A more pervasive threat to the industry at large,
however, could be regulatory initiatives that potentially curtail
the availability of capital from, and the deployment of capital
within Europe for start-up and growth investments. Not
somethingthatIbelieveEuropecanaffordintimesofeconomic
contraction and financial turmoil that still lay ahead of us.
Historic assets
More stringent regulations are set to change the private equity
environment worldwide, and Luxembourg has all the right assets
to take advantage of this situation. Journalists often ask whether
LuxembourgwillrepeatthesamesuccesswiththeAIFMDthatit
had with UCITS IV. In fact, there is one major difference between
thetwo.UCITSIVprimarilyprotectstheinvestorfromhimself,whe-
reastheAIFMDisaimedatprofessionals.PrivateEquityisanasset
classwithlimitedliquidityandismorecomplexthanUCITS,which
automatically rules out any form of ‘industrialization’. That being
said,Luxembourghasextensiveexperienceinaregulatedcontext.
Since the advent of the risk capital investment company (SICAR)
in 2004, the country has been building up know-how in Private
Equity.Foralongtime,itwastheonlycountryrequiringtheuseof
acustodian.Thecompleteinfrastructureisalreadyinplace.
Towards a private equity FSP
With the implementation deadline of July 2013 approaching
fast, investors should soon demand that AIFMs fully comply
Hans-Jürgen Schmitz,
LPEA Chairman*
“Skype is a prime
example of the
success of Private
Equity in
Luxembourg”
©360Crossmedia
Private Equity in
Luxembourg:
Three steps ahead

7. #1 – capitalV – 1312 – capitalV – #1
Cover Story
Invest Industrial:
Turning
Ducati
around
©Ducati

8. Cover Story
When Invest Industrial invested
in Ducati, it was on the verge of
bankruptcy. Six years later, the firm
was sold to Audi with more than
double the market share and roaring
profits. Invest Industrial’s Carl
Nauckhoff explains how the iconic
motorcycle marque was
transformed.
#1 – capitalV – 1514 – capitalV – #1
tional capital and industrial solutions to enable the company
to really do what it ought be doing – developing fantastic
premium motorbikes through a powerful R&D department.
Most of the time our industrial approach delivers real
progress. It is very rare that we have to cut costs or jobs.
The final step involved speeding up the internationalisation
of the company. When we invested, there was only one man-
ufacturing facility, in Bologna. Now there is a second plant
in Thailand and a third in Brazil. We also expanded the dealer
network in Asia.
What is Ducati’s situation today?
The company produced around 42,000 motorbikes in 2011,
of which 80 per cent were sold overseas. Asia in particular
is a highly promising market where sales are growing at a
fast pace. During our ownership, EBITDA quadrupled to
19.7% of turnover in 2011. We are always trying to acquire
business that happen to be located in Italy or Spain but have
a global potential. Gucci, Prada and Versace are great
brands as well as ambassadors for Italy! But investors like
us need the right project: a mature company with a proven
brand and identifiable problems such as management fail-
ures, weak R&D or ineffective retail marketing. And Ducati
is now back on the right track.
When did Invest Industrial get involved
with Ducati?
We invested in two steps. In 2006, we acquired 30 per cent
less one share, in order to get into the company with a large
enough stake to control its future strategy. At that time, the
company was publicly listed and was in a weak financial
state. Two years later, after confirming our key assumptions,
we took the company private. Looking back, it was the right
moment, given how markets were doing at that time.
You sold Ducati to Audi in 2012 for €860m.
How did Invest Industrial turn Ducati
around?
We did what we always do – adopt an industrially-driven
approach. First we strengthened the management by
appointing a new CEO and executive team, which is very
important if you want the company to be able to grow. More
experienced people are capable not only of taking the right
decisions but of implementing them. We happen to have a
deep bench of managers we have worked with over the past
20 years. For example, they teamed up with Porsche
Consulting, because we thought their experience in the
SUV market had parallels with the cruiser market Ducati
was trying to develop. In a second step, we provided addi-
Invest Industrial:
Turning Ducati around
“Performance is
ultimately about
hard work!”
Carl Nauckhoff
©Ducati

9. The European Commission came up this year
with a special Christmas gift: the so long
awaited Level 2 implementing measures for
the AIFM Directive; as a cherry on the cake,
the ESMA released that very same day two
consultation papers on the types of AIFMs
and on the key concepts used
in the Directive.
#1 – capitalV – 1716 – capitalV – #1
the role
of professional
associations
L2 released with important
clarifications for PE What the reform
is really about
The L2 implementing measures brings clarifications on the
following important topics for PE: how to calculate assets
under management to benefit from the de minimis exemp-
tion threshold; how to treat exposure that exists at the level
of any financial or legal structures involving third parties
controlled by the AIF and how to deal with temporary bor-
rowing arrangements (such as bridge financing); operating
conditions and in particular due diligence requirements
when investing in target companies, risk management, or
Regulatory
avoid assessing the ‘substance’ of the delegated activities
as compared to those retained by the AIFM on a quantita-
tive basis only.
Which reminds us of the key role
of professional associations
The engagement of a professional association such as
LPEA is key to represent our industry and advocate for a
pragmatic interpretation. Let’s be clear, the idea is by no way
to circumvent the AIFM Directive and in particular its sub-
stance-strengthening approach. The idea is to help regula-
tors to come up with a workable interpretation, meaning an
approach creating value and growth. In doing so, Private
Equity professional associations, first of course the EVCA
but also national associations such as LPEA are fully sup-
porting the EU Commission’s agenda to create growth into
Europe.
* Alain Kinsch is Country Managing Partner at Ernst & Young
Luxembourg and EMEIA Private Equity Fund Leader
at Ernst & Young
Axelle Ferey is Director, Private Equity at Ernst & Young,
Luxembourg
transparency (with a reporting to regulator required only
annually for PE under conditions).
However, a real margin for interpretation
remains on key topics
However, on other topics, such as delegation, the text leaves
significant room for interpretation. As it stands now, the
Article 82 on the Letter Box entity does not fully clarify to
what extent an AIFM may delegate portfolio and/or risk
management without being deemed a letter box. Art 82
mainly contributes to the debate a set of qualitative criteria
which regulators are required to take into account so as to
Playing the AIFM
music in the right tone:
Alain Kinsch
LPEA Vice-Chairman
and Axelle Ferey, LPEA Member*
“Private Equity
professional
associations are fully
supporting the EU
Commission’s agenda
to create growth
into Europe.”
©360Crossmedia

10. Tax
Luxembourg has been well known, for many years now,
as one of the leading locations for structuring
private equity investments in the European Union. One
of the main factors contributing to this success is
certainly the business friendly and flexible
Luxembourg tax environment.
#1 – capitalV – 1918 – capitalV – #1
Private equity in Luxembourg:
what about the current
tax environment?
EUR 1,500 applicable to financial companies (i.e., companies
whose net assets consist of more than 90% of financial
assets, transferable securities and cash at bank) has been
increased to EUR 3,000 but is capped at EUR 20,000 for tax
consolidated groups. Furthermore, a new minimum tax appli-
cable to all other Luxembourg companies, ranging from EUR
500 to EUR 20,000 (depending on the total balance sheet of
each company at the end of the fiscal year), applies from
January 2013. This minimum tax can however be deducted
from the corporate income tax liability of the coming years
and should not be applicable in a double tax treaty context
(provided that the right to tax is not granted to Luxembourg).
Given the relatively low amount of this tax and the fact that
treaty protection will be available in many situations (in parti-
cular with respect to private equity real estate investments
structured through Luxembourg property companies), one
can expect that the changes brought by the finance law
should have limited adverse tax consequences in most cases.
A positive outlook:
the Luxembourg limited partnership
Having said that, Luxembourg is also in the course of adopting
new tax measures which will be of significant importance for
the private equity industry. Luxembourg is indeed in the pro-
cess of implementing the alternative investment fund mana-
gers directive (AIFMD) into Luxembourg domestic law. The bill
whichiscurrentlyunderreviewforadoptionbytheLuxembourg
parliament, contains specific tax provisions applicable to limi-
ted partnerships and to carried interest which should create
a favourable tax framework for structuring private equity
L
uxembourg indeed offers a large number of diffe-
renttypesofvehicles,eitherregulatedornot,which,
combined to a large double tax treaty network and
the favourable Luxembourg participation exemp-
tion regime and/or other specific tax regimes,
contributes to creating a competitive tax framework suitable
to the needs of most of the private equity players.
A challenging environment:
international pressure and public
deficits in Luxembourg
However,likemanycountries,Luxembourgisnowfacingmany
challenges, among them an ongoing financial turmoil as well
as increasing pressure from the international scene promo-
ting a global tax harmonisation and challenging more and
more tax planning strategies. Any such tax planning should
thusreflectthecommercialsubstanceofagroup’soperations
and be in line with the arm’s length principle. Having an ade-
quate level of substance and carrying out genuine economic
activities in Luxembourg are thus key factors in the success
of any tax planning strategy. These issues relating to tax plan-
ning are unlikely to go away while countries have their own tax
systems.
In this context, the Luxembourg government had to adopt a
finance law for 2013 that accommodates the needs for an
increase in tax revenues and a reduction of the public deficit.
One of the main measures that affects all corporations, inclu-
ding those active in the private equity sector, are the changes
brought to the minimum taxation levied on all Luxembourg
companies as from 2013. In a nutshell, the minimum tax of
Patrick Mischo,
LPEA Member*
Long version
investments via Luxembourg.
Fromalegalpointofview,thebillwillresultintheimprovement
oftheexistingLuxembourglimitedpartnershipregime(i.e.,the
«SCS» having legal personality) and in the setting-up of a new
type of limited partnership, the so-called special limited par-
tnership (i.e. the «SCSp» not having legal personality). From a
direct tax perspective, Luxembourg limited partnerships are
in principle tax transparent from a tax perspective, but they
may still be subject to Luxembourg municipal business tax in
certain cases, should they perform or be deemed to perform
a commercial activity in Luxembourg. This taxation was
clearly proving to be an obstacle to the attractiveness of this
type of vehicle for international investors. The bill undertakes
to modify the conditions according to which an (unregulated)
limited partnership can be subject to Luxembourg municipal
business tax (on a deemed commercial activity basis). As a
consequence, it will be possible under the new tax framework
to structure private equity funds organised as a limited par-
tnership in total tax neutrality. From a foreign tax perspective,
the availability of a limited partnership without legal persona-
lity should allow full tax transparency, which is often highly
relevant for investors into private equity funds. This reform
should thus put Luxembourg on an equal footing with Anglo-
Saxon limited partnerships, which is most welcome as the
main international model for private equity funds is traditio-
nally a limited partnership.
A special tax regime for carried interest
The bill also introduces some specific provisions relating to
the tax treatment of the carried interest paid to the managers
of an AIF. It is indeed foreseen that the carried interest paid
to individuals who are employed by managers (or by manage-
ment companies) of AIFs, may be subject to tax at a reduced
rate (equal to a quarter of the global rate, i.e. approximately
10%). This favourable tax regime is however only available if
a certain number of conditions are met and notably under the
condition that the individual (i) was not previously tax resident
(or subject to tax) in Luxembourg during the five years pre-
ceding the entry into force of the law and (ii) becomes a
Luxembourg tax resident during the year of entry into force
of the law or during the next five years. Although the various
conditions provided for under the bill are too strict in terms of
limitation in time and not always fully compatible with the pri-
vate equity operating model, the introduction of a specific
carried interest tax regime as such is a positive signal for the
private equity industry as it demonstrates the willingness of
the Luxembourg tax authorities to create a favourable and
competitive tax framework in order to attract private equity
market players to Luxembourg. LPEA will certainly continue
its lobbying efforts with the aim of obtaining relevant adjust-
ments of the conditions provided for by the bill to ensure that
the contemplated tax regime will become attractive to the
private equity sector.
All put together, this shows that, despite a challenging envi-
ronment,Luxembourgcontinuestoimproveitstaxframework
to remain attractive to the private equity industry.
* Partner, Allen & Overy Luxembourg

11. Profile
20 – capitalV – #1
Advent Venture Partners is one of Europe’s best
established growth and venture capital firms with
a long experience in Life Sciences. The Advent Life
Sciences Fund I (ALSF I) is the 5th fund established
by Advent Venture Partners and exclusively dedicated
to life sciences.
Advent Venture Partners –
Life Sciences’ venture:
our core activity
acquired by Amgen and Algeta (OSE: ALGETA), an oncology
company developing treatments for bone metastases and
disseminated tumours.
What is your investment plan for the future,
also on the Luxemburgish’s market?
ALSF I is a £101m fund which started to invest in February
2011. Up to date, 9 investments have been made. The fund
targets around 15 investments, 70% of the investments
taking place in Europe. In line with the Luxembourg
Government’s initiative to promote the health technologies
sector, Société Nationale de Crédit et d’Investissement
(SNCI) decided to invest into ALSF I in order to strengthen
the overall health technologies action plan established and
presented by the Government in 2007.
ALSF I will investigate potential investments opportunities
in Luxembourg, as well as it will leverage on the network and
the experience of its partners to support the development
of the Life Sciences ecosystem locally.
* MD Venture Partner
What are your main areas of activity?
Advent Life Sciences invests predominantly in early-stage
and growth equity life sciences companies in the UK,
Europe and the US. It will back companies that have a first-
or best-in-class approach in a range of sectors within the
life sciences sector, including new drug discovery, enabling
technologies, med-tech and diagnostics.
Can you tell more about the kind of invest-
ments you are dealing with?
Advent Life Sciences is a leader in European life sciences
venture capital. Its investments include: PowderMed, a
therapeutic DNA vaccine company sold to Pfizer; Thiakis,
an obesity treatment company acquired by Wyeth
Pharmaceuticals; Respivert, a drug discovery company
focused on respiratory diseases that was acquired by
Johnson & Johnson; EUSA Pharma, a transatlantic special-
ity pharmaceutical company acquired by Jazz
Pharmaceuticals; Avila Therapeutics, a biotechnology com-
pany developing targeted covalent drugs acquired by
Celgene Corporation, Micromet, a biotechnology company
AUDIT - TAX - ADVISORY
Turning Complexity
into Opportunity
kpmg.lu
Watch KPMGTV on www.kpmg.lu/tv
© 2013 KPMG Luxembourg S.à r.l., a Luxembourg private limited company, is a subsidiary of KPMG Europe LLP and a member of the
KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity.
All rights reserved.
Alain Huriez*

12. Focus
The Council of the European Union
published an amended proposal
for a Regulation on European
Venture Capital Funds (“VCF”) on
7 December 2012 (the “Regulation”).
The EuVECA Label
New Opportunities ahead for
Venture Capital and Luxembourg
development of its fast- growing venture capital industry.
Investment companies in risk capital (“SICAR”) and special-
ised investment funds (“SIF”) will be put in a competitive
position to raise monies within an investor base composed
of professional clients and other investors who commit to
invest a minimum of EUR 100,000. The new Luxembourg
Special Limited Partnership (“SLP”, société en commandite
spéciale) introduced in the Luxembourg bill of law transpos-
ing the AIFMD will also constitute a flexible alternative to
the above regulated structures.
The Regulation appears as a solid opportunity (i) to promote
venture capital across the European Union and (ii) for
Luxembourg to establish its fast- growing venture capital
industry as one of the best jurisdictions to take advantage
of its different legal structures and its long and well-recog-
nised experience in dealing with cross-border distribution.
1. Under certain specific conditions, including tax reporting policies of
the third country.
* Counsel, Elvinger Hoss & Prussen
1. Purpose of the Regulation
The purpose of the Regulation is to facilitate the access of
small and medium-sized enterprises (“SMEs”) to financing,
in order to stimulate their growth and sustainable develop-
ment. It is addressed to EU venture capital fund managers
(“VCFM”), which are subject to the registration procedure
under the AIFMD and whose assets under management do
not exceed EUR 500 million in total. VCFM willing to use and
distribute non-leveraged European VCF across the
European Union will be conducting their activities by using
the designation “EuVECA”.
2.RequirementsintroducedbytheRegulation
The Regulation also introduces requirements at the level of
the VCF such as the composition of its investment portfolio,
investment techniques and eligible undertakings. The use
by a VCFM of the designation EuVECA shall be limited to
the management of European VCF that invest at least 70%
of their capital contributions and uncalled committed capi-
tal in equity and/or quasi-equity issued by one or several
European and third country1
non-listed undertakings whose
annual turnover or balance sheet does not exceed EUR 50
million or EUR 43 million, respectively.
3. Luxembourg’s perspectives
The Regulation will permit Luxembourg to continue the
Xavier Le Sourne,
LPEA Member*
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› relocation assistance for fund managers.
SGG offers you:
› Company incorporation and directorships,
› office rental and management,
› Staffing support and payroll,
› your companies’ secretarial support,
› reporting and tax compliance services,
› accounting and consolidation support (local gaaps, ifrS).
SGG is a leading financial services provider, fully regulated and independent, with 500 professionals at your service
on 4 continents. Established in 1896 in the Netherlands, in 1953 in Luxembourg.
member of EVCa, LpEa, aLFI
#1 – capitalV – 23

13. Gaming
Kabam:
Paving the way for
a digital future
the required audience but also to indicate their passion for
providing the ultimate free-to-play gaming experience.
Kabam have launched extensive research into the whos and
whys of social networks, highlighting the outmoded stere-
otype of the social platform game player and focused on the
rise of a rapidly growing segment – the hardcore social
gamer.
Social networks key to global presence
It’s an industry wide fact that gamers are migrating their
playing time, and the currency they spend, to social games
at the expense of traditional gaming platforms. Today, as a
leading developer of free-to-play online games that combine
deep, immersive gameplay with the connectivity and inter-
action benefits of social networks, Kabam is leading the
charge of a new wave of games. With this in mind, Kabam
are serious when they say they are offering a very real chal-
lenge to the Xbox 360® system, PlayStation® 3 and
Nintendo Wii™. First Europe, then the world!
Digital means for communication methods
Kabam, founded in 2006 developed social network applica-
tions, and spotting a gap in the market, shifted direction,
becoming one of the first developers on Facebook, creating
sports and entertainment communities. The results saw app
installations top 60 million. What better in-built audience is
there than those already logged onto social networking plat-
forms? Kabam aim to maximize Massively Multiplayer Online
(MMO) games and create a unique experience for ‘hardcore’
gamers - those who know what they want and how they want
it. Tailoring challenges for this niche group is no mean feat
and adaptation is key to survival. Kabam has offices in San
Francisco and Redwood City, California, Beijing, China, and
now Luxembourg. With seven games on the market, and a
growing team (400 and counting), the only way is up.
Gaining the access to maximize the RAM
Kabam’s soundbite is ‘We play, for real’. The double meaning
speaks volumes for both the ability to identify and target
Arguably one of the most lucrative industries
in entertainment, the games industry is a tough nut
to crack. Kabam now have an HQ in Luxembourg,
and are poised to climb to the very summit of this
digital domain. How? By cornering the social
network’s games market.
24 – capitalV – #1
©DR

14. ©2013EYGMLimited.AllRightsReserved.ED0313
Create value
in private equity.
Private equity is not immune to micro-economic
uncertainties that cloud the horizon, but has
demonstrated to withstand shocks, while bringing
private equity investors with more entrepreneurial
mindset to working with their portfolio companies.
For more than 20 years, Luxembourg has established
itself as a major hub in the private equity industry, while
attracting private equity houses from all over the world,
to structure private equity transactions or regulated
private equity funds.
Find out how Ernst & Young Luxembourg comprising
of more than 100 professionals fully dedicated to
Private Equity can help you add value in your business
at ey.com/luxembourg.
Alain Kinsch
EMEIA Private Equity Fund leader
Ernst & Young
alain.kinsch@lu.ey.com
Olivier Coekelbergs
Luxembourg Private Equity Leader
Ernst & Young
olivier.coekelbergs@lu.ey.com
Philharmonie
Luxembourg:
Sounds perfect!
concert room. It doesn’t stop there, however: the concert hall
is truly open to all types of music. There is also space for lively,
demanding jazz, world music and contemporary music. Such a
blend of tradition and modernity is not surprising, not in
Luxembourg.
At the crossroads of a promising future
TojustifyitsstatusasaEuropeancapital,Luxembourgneeded
a concert hall to match its reputation. However, as the project
was part of a long-term policy, an important place has been
giventothemostdemandingofaudiences–children.Teaching
children to love music is a major educational undertaking.
Everyone is capable of appreciating a symphony, but to under-
stand it, appropriate it and really feel it requires a finer, more
nuancedapproach.Yourearsneedtobeeducated,inthesame
that you educate your tastebuds. From “1-2-3 music” for the
very youngest to “iPhil” for 13-17 year olds, there is a complete
range of concerts in French, German or Luxembourgish to
introduce children to the wonders of the most beautiful melo-
dies in music and make them part of their lives – and their MP3
players.
Make the space vibrate
The Philharmonie Luxembourg, also known as the Grande-
Duchesse Joséphine-Charlotte concert hall, is located in the
heart of a lively district and is a musical temple vibrating with a
myriadofnotes,magnificentmelodiesandsurprisingrhythms.
Designed by the French architect Christian de Portzamparc,
who has built a number of prestigious concert halls, the
Philharmonie’s design represents a natural filter into the world
ofmusic.Linesofcolumns,liketightstrings,separatetheexte-
riors of the various halls with their finely worked acoustics,
which can be adjusted to suit the artists performing there. A
total of nearly 193,000 square metres of art, finesse and pas-
sion, which will amaze concertgoers at every performance.
Open to the world
ThePhilharmonieprogrammecanbeaccuratelysummedupin
oneword:eclectic.Withover400concertsperyear,morethan
oneaday,ithoststhemostprestigiousorchestrasintheworld,
from London, Saint-Petersburg or Vienna, along with the no
lessprestigiousLuxembourgPhilharmonicOrchestra,andwel-
comes the biggest names in chamber music to a dedicated
Situated in the centre of the Kirchberg buildings,
the Philharmonie Luxembourg is a sublime concert
hall where you can hear the most beautiful
music in the world.
#1 – capitalV – 27
Culture
©Philharmonie

15. Social clubs
28 – capitalV – #1
Networking
in Luxembourg
Social Clubs
Cercle Munster: www.munster.lu
Golf Club Grand Ducal: www.gcgd.lu
SERVICE CLUBS
Rotary: www.rotary-interclub.lu
Lions Club: www.lions.lu
Round Table: www.trl.lu
JCI: www.jci.lu
Kiwanis: www.kiwanis.lu
SPORTS
Polo Club: www.poloclub.lu
Tennis clubs: www.scheiss.lu, www.tennisspora.lu
Golf Clubs: www.golfdeluxembourg.lu,
www.kikuoka.lu, www.golfclervaux.lu,
www.golfgaichel.com, www.golfclubchristnach.lu
Fitness: www.justmove.lu, www.coque.lu
Yacht Club: www.mycl.lu
Pool: www.Q42.lu
CHAMBERS OF COMMERCE
Chamber of Commerce of Luxembourg: www.cc.lu
American Chamber of Commerce: www.amcham.lu
Italian Chamber of Commerce: www.ccil.lu
French Chamber of Commerce: www.cfci.lu
British Chamber of Commerce: www.bcc.lu
Indian Chamber of Commerce: www.ibcl.lu
Nordic countries: www.nobelux.se
PROFESSIONAL ASSOCIATIONS
Banks: www.abbl.lu
Investment Funds: www.alfi.lu
Private Equity: www.lpea.lu
Industry and Trade: www.fedil.lu
OTHER BUSINESS LINKS
Entrepreneurs Task Force: www.etfl.lu
Luxinnovation: www.luxinnovation.lu
Incubator: www.technoport.lu
Regulator: www.cssf.lu
Research: www.tudor.lu
Government: www.gouvernement.lu
OTHER WEBSITES
Formalities: www.guichet.lu
Schools: www.euroschool.lu, www.islux.lu,
www.st-georges.lu, www.vauban.lu, www.empf.lu
Foundations: fdlux.lu
Tourism: www.visitluxembourg.com
Automobile Club: www.acl.lu
© 2013 PricewaterhouseCoopers, Société coopérative. All rights reserved.
www.pwc.lu/private-equity
Luxembourg in the race
for implementing AIFMD
and becoming a leading
Private Equity and
Alternative Funds centre
Your contacts
John Parkhouse, European Asset Management Leader
+352 49 48 48 2505
john.m.parkhouse@lu.pwc.com
Didier Prime, Luxembourg Asset Management Leader
+352 49 48 48 6130
didier.prime@lu.pwc.com
Vincent Lebrun, Private Equity Industry Leader
+352 49 48 48 2255
vincent.lebrun@lu.pwc.com
Regis Malcourant, Hedge Funds Industry Leader
+352 49 48 48 2540
regis.malcourant@lu.pwc.com
Amaury Evrard, Real Estate Industry Leader
+352 49 48 48 5751
amaury.evrard@lu.pwc.com
Marie-Elisa Roussel, Luxembourg AIFMD Leader
+352 49 48 48 2583
marie-elisa.roussel-alenda@lu.pwc.com
Increasing demand for
transparency and trust
Evolving tax environment
More stringent regulations
and higher standards
Risk management & operational failures
To help navigating through these
challenges, PwC Luxembourg Alternative
Group serves 70 of the top 100 asset
managers around the world and is a
trusted business adviser to investment
managers, distributors and other sponsors
of alternative investment products.
Join our Alternative Investments
community and do not miss our next event:
• Private Equity Forum 27 June 2013
©360Crossmedia

16. LPEA in Brief
30 – capitalV – #1
ABOUT LPEA
EXECUTIVE COMMITTEE
TECHNICAL COMMITTEE LEADERS
T
he Luxembourg Private Equity and Venture Capital Association (LPEA)
is a member-based, non-profit trade association established in 2010.
LPEArepresents,promotesandprotectstheinterests oftheLuxembourg
private equity and venture capital industry.
LPEA’s role includes representing the interests of the industry to regulators and
standard setters; developing professional standards; providing industry research;
professional development and forums, facilitating interaction between its
members and key industry participants including institutional investors,
entrepreneurs, policymakers and academics.
LPEA’s activities cover the whole range of private equity, from venture capital
(seed, start-up and development capital), to buyouts and buyins.
LPEA is a member of the European Private Equity and Venture Capital
Association (EVCA).
Hans-
Jürgen
Schmitz
Chairman
Legal & Regulatory Committee: Séverine Michel, Cintia Martins Costa
Tax Committee: Patrick Mischo
AIMFD Committee: Hans-Jürgen Schmitz, Paul Junck
Accounting & Valuation Committee: Benoît Cheron, Yves Courtois
Market Intelligence & Training Committee: Fiona Monsen, Axelle Ferey
Promotion Committee: Bertrand Manhe, Benjamin Lam
Alain
Kinsch
Vice-
Chairman
Antoine
Clauzel
Member
Patrick
Mischo
Member
Emanuela
Brero
Vice-
Chairman
Paul Junck
Managing
Director
Gilles
Dusemon
Member
Jérôme
Wittamer
Member
alterdomus.com
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