For the first time, the AMAF (Association Monégasque des Activités Financières) took part in IPEM (Cannes 28-30 January), one of the largest international events dedicated to Private Equity. The initiative was spearheaded by Nicolas FEIT, Chairman of the Commission for the Promotion of the Monegasque financial centre and Managing Director of Société Générale Private Banking Monaco.
This first participation underlined the growth of the Monaco financial centre as well as its increasing attractiveness for investors and General Partners (GPs) looking for a stable fiscal, legal and economic environment.
Why does Monaco attract private equity investors?
With €168 billion in assets under management, growth of 15% in three years, and the arrival of more than 20 new financial players since 2020, Monaco is establishing itself as a fast-growing financial centre.
‘ Our objective was to present Monaco to IPEM not only as a financial centre of excellence, but also as a strategic destination for private equity investors. The Principality attracts an ultra-sophisticated clientele, with a growing number of family offices choosing to set up some or all of their operations here, ’ explains Nicolas FEIT.
Monaco is attractive to private equity investors for a number of reasons:
- A stable and flexible regulatory framework that makes it easier for funds and management companies to set up in the Principality
- An advantageous tax regime, particularly for private investors and companies generating more than 75% of their turnover in Monaco
- Strong legal certainty, an essential element for long-term capital management
- An exceptional living environment, attractive to managers and entrepreneurs in the sector.
Experts meet to enhance the attractiveness of Monaco as a financial centre
The AMAF's presentation at IPEM took the form of a round table, bringing together several experts from Monaco's financial sector, around Nicolas FEIT, including:
- Olivier DAUMAN (Executive Director CFM Indosuez Wealth Management)
- Valentina SLOBODENIUK (Edmond de Rothschild Monaco)
- Massimo PASSAMONTI (CEO Privatam)
- Anthony STENT-TORRIANI (CEO Monaco Asset Management)
Topics covered included:
- The growing interest of UHNWIs (Ultra-High-Net-Worth Individuals) in private equity investments, with a significant proportion of their assets now allocated to private markets
- The rise of secondary funds and co-investments, which offer more flexible investment solutions that can be deployed more quickly
- The opportunity for General Partners to set up in Monaco.
"We put forward the idea that Monaco is a strategic destination for GPs wishing to set up in a stable environment, benefiting from a sophisticated client base and favourable regulation," emphasised Nicolas FEIT.
Monaco lays the foundations for the international expansion of its financial centre
The speech attracted an audience of family offices and institutional investors. Promising exchanges took place, notably with players in the Middle East, Belgium and London, but follow-up and consolidation work remains to be done.
"This was a first step, laying the foundations. To really capitalise on this presence, we need to structure our communications, organise targeted meetings and raise our profile at the event ’, adds Nicolas FEIT.
One of the great successes of this year's event was the diversity of the contacts made:
- European and American investors interested in the opportunities offered in Monaco
- Discussions with Belgian and London family offices interested in finding out more about Monaco's financial ecosystem
- Exchanges with players from the Middle East, for whom Monaco represents a strategic bridge between Dubai and Europe.
Monaco's ambitions to become a private equity hub
The objective for the coming years is to :
- Strengthen its presence at major international events dedicated to private markets
- Attract more General Partners to Monaco, by promoting its tax and regulatory advantages
- Develop synergies with other financial centres such as Luxembourg, Switzerland and the United Kingdom.
- Structure a specific offering for Family Offices, to meet their growing needs in terms of private asset management.
By gradually establishing itself as a key destination for private equity, Monaco will play an increasingly central role in international asset management.
