AGEFI Luxembourg - mai 2025

By Shanu SHERWANI, CIOKneipManagement S.Aand PartnerAntwort Capital F amily offices are no longer content to play a passive role in global capital markets. Once seen as quiet, conservative wealth stewards, they are nowbe- coming influential players in private equity (PE)— not just as limited part- ners (LPs), but as direct investors and strategic collaborators. This shift is quietly reshaping the private capital landscape. The FamilyOffice Evolution Over the past decade, family offices have matured significantly in both structure and ambition. While theiroriginslieinwealthpreservation,manyarenow firmlyfocusedonwealthcreation—andincreasingly, theyareachievingthiswithoutleaningontraditional gatekeeperslikeprivatebankersorwealthmanagers. Today’s family offices are building in-house invest- ment teams, hiring former PE professionals, and seekinggreatercontrolovertheircapital.Ratherthan relying on external advisors to source and structure opportunities, they’re taking ownership of the entire investment process—particularly when it comes to private equity. Why Private Equity Appeals to FamilyOffices Private equity’s long-term horizon, value cre- ationpotential,andstrategicflexibilityareanat- ural fit for family offices. Unlike institutional investors constrained by fund life cycles or liq- uidity mandates, family offices can afford to be patientcapital.Manyarelookingfordealsthat alignnot onlywithfinancial returnob- jectives, but alsowith family values, legacy goals, or industry expertise. “This point is particularly impor- tant, as the wealth of family offices typicallyoriginates fromanexit ina specific industry, leading them to channel their investments into sec- tors where they have established ex- pertise.” Direct investing and co-investing are also increas- inglypreferredoptionthroughaccessinPEfunds.By investing outside the fund model, family offices avoid layers of fees, gain decision-making authority, andcan tailor their exposure to specific sectors or ge- ographies. This shift also reflects a broader trend: family offices are no longer outsourcing their invest- ment philosophies—they’re asserting them. MovingBeyondPrivate Bankers A notable evolution is the declining reliance on pri- vate bankers. While private banks historically acted asprimaryintermediaries—offeringdealflow,struc- turing advice, andaccess to funds—many familyof- fices nowviewthemas tooproduct-drivenandmis- alignedwith their long-term interests. Today’s family offices are instead prioritizing inde- pendenceandobjectivity.Theyarebuildingdirectre- lationships with private equity sponsors, sourcing proprietarydeals, andusing specializedadvisors se- lectively—only when they add value, not as default gatekeepers. The move reflects both confidence and capacity: many family offices now have the infras- tructure to go direct, fromdue diligence to post-deal governance. HowPrivate Equity FirmsAreResponding PE firms, recognizing the rising influence of family offices, are adapting. They are offering co-invest- ments, customizingmandates, and increasingly see- ing family offices not just as capital providers, but as strategic partners. In sectors like real estate, health- care, and technology—where families often have deep domain knowledge—this alignment can be particularly powerful. Some GPs are even rethinking their LP base to in- clude a larger share of family offices, valuing their flexibility,discretion,andlongerinvestmenthorizons. Risks andConsiderations While this trend is promising, it’s not without chal- lenges. Direct investing demands strong internal ca- pabilities: sourcing, due diligence, operational support, and risk management. Smaller or newer family offices may struggle to match the execution speed and analytical depth of institutional players. There’s also the risk of over-concentration in a few deals or sectors. Forprivateequityfirms,partnershipswithfamilyof- fices can require more hand-holding, longer negoti- ation cycles, and a shift from fund-driven to relationship-driven strategies. TheRoadAhead Looking forward, the influence of family offices in private equity is only expected to grow. Some will continuetoinvestviafunds,butincreasinglyontheir ownterms.Otherswillformsyndicates,launchhold- ing companies, or build specialized platforms to ex- ecute deals independently. As this ecosystem matures, traditional intermediaries—banks, place- ment agents, even some GPs—may need to rethink their value proposition. In this new era, access alone is not enough. Family officeswant alignment, trans- parency, and strategic partnership. Conclusion The rise of family offices as active private equity in- vestorsmarksameaningfulrealignmentintheworld of private capital. No longer relying on private bankers or off-the-shelf solutions, these offices are forging their own paths—independent, agile, and often contrarian. For both sides, the opportunity lies in building long-term, values-driven partnerships that go beyond capital. The private equity playbook isbeingrewritten—andfamilyofficesarehelpingau- thor the next chapter. Private Equity and Family Offices: ANew Era of Strategic Partnership L e ministre des Finances, Gilles Roth, a mené une mission financière de deux jours aux Émirats arabes unis axée sur le renforcement de la coopération financière et l'exploration de nouvelles opportunités dans divers domaines tels que la fintech, la finance durable et l'inves- tissement transfrontalier. La délégation ministérielle était accompagnée par Luxembourg for Finance, l'agence nationale pourledéveloppementdelaplace financière, ainsi que la Luxembourg House of Financial Technology (LHoFT). Le ministre Roth est intervenu au Dubaï FinTech Summit, rassemblant 10.000 participants. Son discours a porté sur la croissance écono- mique mondiale et l'innovation dans le secteur financier. En margedu sommet, il aparticipé à un évènement co-organisé par la LHoFT et la MENA Fintech Association, réunissant l'écosys- tème fintech régional. Toujours àDubaï, leministreaeu une entrevue bilatérale avec S.A. cheikh Maktoum bin Mohammed bin Rashid Al Maktoum, deputy ruler de Dubaï, Vice-Premier ministre et ministre des Finances des EAU, pour s'échanger sur la situation macroéconomique et géopoli- tique et les opportunités de ren- forcerdavantagelesliensentreles secteurs financiersdesdeuxpays. Renforcer la coopération dans le domaine de la recherche sur l'IA ÀAbou Dhabi, le ministre a ren- contré S.A. cheikh Hamed bin Zayed Al Nahyan, managing director d'ADIA, le plus grand fonds souverain du pays. Il a en outre assisté à la signature d'un mémorandum d'entente entre ADIA Lab et le Luxembourg Institute of Science and Techno- logy(LIST),renforçantlacoopéra- tiondans le domaine de la recher- che sur l'intelligence artificielle. Lamissionaétémarquéeenoutre par une série de rencontres de haut niveau avec des institutions financières à Dubaï et Abou Dhabi, ainsi qu'avec lesdirigeants des deux places financières – AGDM et DIFC – en vue de consolider les liens économiques et financiers entre leLuxembourg et les Émirats arabes unis. « Le Luxembourg et les Émirats arabes unis partagent une vision commune: celle d'un développe- ment économique fondé sur l'in- novation, l'ouverture internatio- nale et une solide expertise dans lesservicesfinanciers.Mamission ici vise à renforcer ces synergies et à bâtir des ponts concrets entre nos places financières. Plus que jamais il importe de développer des marchés financiers intercon- nectés avant de stimuler la crois- sancemondialeetl'investissement transfrontalier », a déclaré le ministredesFinances,GillesRoth. Source : ministère des Finances Gilles Roth en mission financière aux Émirats arabes unis : « Bâtir des ponts concrets entre nos places » (de g. à dr.) Gilles Roth, ministre des Finances ; S.A. cheikhMaktoum binMohammed binRashidAlMaktoum, Deputy ruler deDubaï, Vice-Premierministre et ministre des Finances des EAU ©MFIN By Nessym Jules TIR, Avocat/Partner, Global Compliance & Investigations, Wolff&Partners SCS, Attorneys at law I n a European and indeed global con- text of questioning the rules relating to environmental compliance, the EUDR is undergoingmultiple clarifica- tions and simplifications, while maintaining the need to im- plement a robust compli- ance systemwhichwill remain the cornerstone for efficient regulation. EUDRobjectives The European regulation against deforesta- tion and forest degradation ( EUDR ) will apply to all products imported into the European Union or exported outside the EU. This regulation aims to put in place due diligence measures aimed at ensuring theabsenceofdeforestationintheproductionprocess of 7 basic products that may come from deforested areas(cocoa,coffee,oilpalm,rubber,soya,wood,and cattle).TheEUDRcarriestheobjectivesofminimizing the contribution to deforestation and forest degrada- tion worldwide and reducing the EU’s contribution to climate change and biodiversity loss. To achieve these objectives, products imported or exported from the EU must respect the principle of zero deforestation, comply with the legislation of the country of production and be subject to a due diligence declaration. In accor- dancewithArticles 4 and8 of theEUDR, operators carry out due diligence, which includes the collection of detailed information, before being authorized to place the concerned product on the EUmarket or to export it, which will demonstrate the compliance of the products with the EUDR. In addition, the performance of a risk assessment for each product to confirm the absence of riskor a negligible risk of non-compliance (Article10ofEUDR) ismitigat- ed and, in case of non-negligi- ble risks of non-compliance, risk mitigation measures should be adopted to achieve a zero or negligible risk. New clarifications On 15 April 2025, the European Commission pub- lished a draft delegated act aimed at clarifying and simplifying the EU Deforestation Regulation. This act addresses stakeholder concerns and makes importantchangestothescopeoftheregulation.One of the stated objectives is to provide legal clarity on which products fall within the scope of the EUDR, and which do not, and to help reduce what the Commission considers to be unnecessary adminis- trative burdens for businesses. Of the operational measures, only products made fromthe relevant commodities fallwithin the scope of the EUDR. The draft law also confirms that the relevant wood products made entirely from bam- boo or rattan are excluded from the scope of the regulation and that waste, used, and second-hand products are also excluded. In addition, the Commission has published guide- lines and FAQs (1) . The main changes include the possibility to submit an annual declaration instead of a declaration for each batch or consignment, the ability that large companies will reuse a due dili- gence declaration already submitted for goods reimported into the EUmarket, and an implemen- tation of lighter obligations for companies that will be able to collect and reference the numbers of their suppliers’ declarationswithout having toduplicate the entire due diligence process. Theguidancespec- ifiesthattheriskassessmentcriteriamustbeadapted to the relevant products that the operator plans to market or export on themarket. There aredifferentways to carryout the risk assess- ment, and the operator should be taking into account the following questions and considera- tions: Where was the product produced?What are the product-specific risks? Are there indications of a company in the supply chain being involved in practices related to illegality, deforestation or forest degradation? Is there any complementary informa- tion onEUDR compliance of companieswithin the supply chain available from certification or third- party verification schemes? Is there concern in relation to the country of produc- tion and origin or parts thereof, such as level of cor- ruption, prevalence of document and data falsifica- tion, lack of law enforcement, violations of interna- tional human rights, armed conflict or prevalence of sanctions imposedby theUNSecurityCouncil or the Council of the EuropeanUnion? The guidance also specifies that the concept of negli- gible risk should be understood in accordance with Article 2(26) of EUDR,whichmeans that on the basis of a comprehensive assessment of the specific and general information relating to the product, and, where necessary, the applicationof appropriatemiti- gation measures, the products do not present any groundsforconcernregardingtheirnon-compliance. In the event of a violation of the regulations, sanc- tions can range from confiscation of the product or revenue generated to a marketing ban, including a fineofupto4%oftheEU’sannualturnover.Inaddi- tion, theEUDRprovides for other sanctions for non- compliance suchas correctivemeasuresby theoper- ator, temporary exclusion frompublic procurement and public funding, or a temporary ban onmarket- ing these items in the EU. The EUDR entered into force on 29 June 2023. Most of the obligations imposedonoperatorsandtraders,aswellasoncom- petent authorities, apply from30December 2025, in accordancewithRegulation(EU)2024/32347amend- ing the provisions of the EUDR relating to the date of application. (2) 1 )https://urls.fr/YH2kRd 2 )https://urls.fr/6le1HU ESG Compliance EUDR: compliance as cornerstone AGEFI Luxembourg 22 Mai 2025 Fonds d’investissement