Estera, a fund services firm, has established itself in Luxembourg with the acquisition of Headstart, a trust and corporate services firm.
The Grand Duchy is emerging as the location of choice for managers seeking a new European base, owing to its developed private funds infrastructure and limited partnership structures. The UK and Ireland are both attempting to compete with the jurisdiction by drawing up more attractive regulations
The acquisition follows Estera’s purchase of Heritage in June, a fund services firm with offices in the UK, Malta and Ireland. It also acquired Guernsey-based Morgan Sharpe in May.
“This acquisition is consistent with our strategy to build a world-class service provider to private equity and real estate funds, and having a strong presence in Luxembourg is central to this,” said Ethan Levner, head of corporate development at Estera.
In other Luxembourg news, the TMF Group, a global business services provider, has expanded its private equity and real estate group in Luxembourg and Guernsey by acquiring Gentoo Holdings.
Gentoo is a fund administrator, as well as depositary and domicile services provider. The company has more than $15 billion under administration.
In 2011 Gentoo spun out of UK private bank SG Hambros and was bought by Disruptive Capital Finance, a UK based private equity firm. The deal meant Disruptive exited Gentoo.