UK PE/VC Managers currently face a number of challenges in connection with their Luxembourg domiciled funds, ranging from EU member states increasingly questioning the economic substance of Luxembourg structures, to ever increasing operational costs and an overheated local fund services market.

Following the UK’s introduction of the QAHC regime in 2022, UK PE/VC Managers have, for the first time in many years, reasons to reappraise the UK as a fund domicile.

In this article, we discuss the key features of the QAHC regime and explore how it could affect fund domiciliation trends in the years to come.