Navigating the Luxembourg Alternative Investments Scene: A Guide for Aspiring Finance Professionals

Securing a position at a top-tier firm and launching your professional career can be quite a challenge. Most leading firms are quite selective and have long recruitment processes to help them parse through applicants and find the one. This article aims at sharing useful & practical insights that can help professionals, recent graduates or seasoned experts, achieve their professional goals. This article is aimed at professionals targeting the Luxembourgish alternative investment scene especially those in middle to front office.

Market Overview

Luxembourg is quite a particular financial market. Unlike London, Paris or Zurich, Luxembourg is not a place where professionals are close to investment decisions. A large part of the positions available in the market are mainly back to middle office with the occasional firm having their investment teams here. For various factors, Luxembourg remains a tight labour market even amidst the latest global market downturn which affected many firms. From an already reduced talent pool, professionals with front office experience in the Alternatives space are quite scarce. From this, we can draw two observations:

1. Interesting investment roles in the middle to front office realm are quite rare and need to be seized rapidly.
2. If you position yourself correctly and have a relevant set of skills, these roles will be available to you.

Finding a way to tackle these two points will help professionals achieve their professional goals.

Rapidly identify & seize opportunities in the market

There are several approaches to solve this challenge; however, the most important one is to understand well different positions and the responsibilities that come with them. A common example in Luxembourg would be that of a Portfolio Manager with Management Company (ManCo) or a Portfolio Manager with an Investment firm. At a ManCo roles tend to be very oriented towards oversight & regulations, the second is much closer to the assets. Same title, very different responsibilities.

Assuming that there is an understanding of the different roles, then the next step is to find them. Even though, this can be suspicious coming from a recruiter, external recruiters are always up to date with the latest openings and work closely with top tier firms as these are the ones often looking for high level talent. This type of talent is always well retained and is often outside of the job market, consequently firms come to recruiters to facilitate the introduction. As such, building a network of a few good local recruiters and discussing with them can open doors to firms and positions that often are not advertised. A concrete case would be that of Family Offices which tend to work in confidentiality and not advertise openings.

Moreover, a strong profile needs to develop their network of other top professionals. In fact, top tier firms give a lot of importance to recommendations coming from their business partners and own professional network. As such, beyond attending events to keep up to date with the market, you should be reach out to your peers and partners from previous deals and people you directly worked with. Good professionals have a track record of always providing good work and that does not go unnoticed.

Positioning & Skillset

Positioning will help you stand out and tick the boxes most of these companies are looking for. In general, to land a role in investment teams, professionals need to be mindful about their career choices early on. Most firms, target professionals with a background in proven firms in their market who are doing a technical role. Academic background also plays a role, but in my estimation, not to the extent some expect. In fact, professional certifications tend to be as valued as some degree and are seen as a strong addition to a university degree. When it comes to certifications, there are two that should be highlighted that are sought after by top tier firms here in Luxembourg.

• ACCA – This certification is recommended for professionals who would like to pursue a career with a focus on accounting rather than investments. If you are targeting Finance Manager or Controlling positions, this would be the one to have.
• CFA – Even though, it might be difficult to accommodate this certification while working, being a Chartered Financial Analyst really sets you apart from other candidates looking into investment roles. This certification can even at times compensate for previous experiences that were not relevant for the targeted position.

Finally, having a polished Résumé and LinkedIn profile are simple but effective tools that help maximise your chances of selection. Most high-level professionals have very clear and organised resumes that explain well their responsibilities without going into too much detail. The same for LinkedIn profiles, keep them updated, professional and avoid posting on topics that are not relevant to your professional life.

To conclude, securing a position in Luxembourg's financial sector requires a combination of strategic positioning, a relevant skillset, and effective networking. Professionals must navigate the unique aspects of the market, capitalize on external recruiters, and leverage certifications to stand out. With a clear understanding of roles, a strong network, and a commitment to continuous professional development, aspiring finance professionals can successfully navigate the Luxembourg financial scene.