expansion. What is your strategy for
international development, and what is
your next step?
S. K. We have a dual strategy: the first one is
our commercial strategy, meaning that we have
representative/business development offices
in regions such as North America and India,
where our clients are based. There, our main
objective is to be close to their core decision-
making center and be available for them at
all times. At the same time, we also have a
global servicing/operational platform allowing
us to support our clients where they need us,
globally; with our top servicing locations being
Luxembourg, the Netherlands, Belgium, the
Caribbean and Hong Kong.
As for the next step, we are considering
expanding our servicing platform into
Anglo-Saxon countries.
Leaders League. How can your new
shareholder, Astorg Partners, contribute
to SGG’s strategy?
S. K. We have known Astorg Partners for a
long time, as they used to be our (happy)
clients. They are fully committed to our
strategy in terms of both our approach to
services and our ambition for expansion: not
only do they bring us capital for acquisitions,
but they have also introduced teams who
are fully competent in successfully closing
complex M&A deals.
Leaders League. How will Brexit impact
your sector of activity and SGG Group?
S. K. As a fervent defender of the EU, I am
devastated by what happened, and I think
this is the real turning point for our Union;
however, from the point of view of our
activity, I believe the impact on the sector
can only be positive.
First of all, since we only have a representative
office, and no operations in the UK, the
Brexit will not negatively impact SGG. On
the contrary, we believe that places like
Luxembourg, where our head office is located,
will be strongly boosted by the Brexit, as an
atmosphere of uncertainty was generated after
the referendum. International companies who
really want to be certain of entering Europe
won’t choose the UK from now on, which will
of course create a positive impact, for example
for the Netherlands. Asset managers based in
the UK will set up shop in other EU countries
in order to continue having the passport to
market their services in the EU. Therefore,
we expect a spike in activity in our principal
locations, and mainly in Luxembourg.Leaders League. How can Luxembourg
seize this opportunity?
S. K. This is indeed a great opportunity
for Luxembourg; it is perfectly placed and
equipped to welcome new asset managers
and holding groups. We may see prestigious
banks such as J.P. Morgan go to Dublin,
Frankfurt or Paris; whereas smaller entities,
management companies or international
companies with a vocation for Europe will
create their holdings in Luxembourg, rather
than the UK.Leaders League. In one word, how do you
envisage the future for SGG?
S. K. “Good!” (Laughs) We have such a strong
eagerness to grow, that even when I hear bad
news such as the Brexit, although worrisome,
all I see are the new business opportunities
that the situation can create.We are very optimistic based on the fact that
the increase in regulatory developments
is one of the main drivers of our activity.
The issuing of each new piece of legislation
adds further work, such as new reporting
obligations, so it’s important to know how
to redirect our activity over time. SGG has
always identified how to do this and we will
work hard to retain it as one of our strong
points for the future. For example, OECD’s
BEPS (Base Erosion and Profit Shifting)
rules that hinder companies from creating
vehicles in countries with low taxation
can generate a lot of business for service
providers like us; either for restructuring
or for creating new substances in locations
where they should be.For private equity clients, we are going to
build other solutions in jurisdictions that
have the presence of important funds. For
corporate clients, we are going to provide
them with more diversified support services.
As for family offices, we want to provide
more services in the countries where their
business is important.BREXIT IS A GREAT
OPPORTUNITY FOR
LUXEMBOURG TO
WELCOME NEW ASSET
MANAGERS AND
HOLDING GROUPS