Private equity firm Blackstone is among a number of financial services companies to have chosen Luxembourg as the site for a European Union subsidiary following Britain's vote to leave the EU, the head of Luxembourg's financial development agency said. Blackstone is among three or four private equity firms that have picked Luxembourg over larger rival European financial centres, Luxembourg for Finance chief executive Nicolas Mackel told Reuters by phone on Monday.
"That's what (Blackstone) told us in December already," he said, adding he could not name the other firms, as they had not yet made their decisions public. Blackstone, which currently uses so-called "passporting" arrangements to offer its services across the European Union from its European base in London, declined to comment. Firms without regulated EU operations outside Britain say they are working on the assumption of a "hard Brexit", where they will no longer be able to sell their services across the EU without an operation regulated by an EU member country.
Mackel's comments come after US insurer AIG said last week it would set up an EU subsidiary in Luxembourg, the largest financial services firm so far to set out details of its EU hub. Dublin, Frankfurt and Paris are among other centres touting themselves as an alternative base for firms wishing to retain access to the EU once Britain departs.
Mackel said one bank had also made a decision to set up in Luxembourg, while 10 to 20 were planning to expand existing operations. Mackel declined to name the bank. He said four or five "big name" asset managers were also planning to set up operations in Luxembourg, following Prudential asset management arm M&G's recent decision to do so.
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