Blackstone, Carlyle Said to Plan Luxembourg Bases Post Brexit

Luxembourg City

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U.S. private equity funds Blackstone Group LP and Carlyle Group LP are pushing ahead with plans to establish so-called passporting rights in Luxembourg to retain the ability to do business in the European Union after the U.K.’s exit, according to people familiar with the matter.

The move is seen as administrative, less about moving people and offices and more to preserve access to European investors after Brexit, the people said, asking not to be identified because the plans are private. Representatives for Blackstone and Carlyle, which already has some operations in Luxembourg, declined to comment.

Since the U.K. voted to leave in June, financial firms including Morgan Stanley and Aberdeen Asset Management have said they’ll likely have to set up new headquarters somewhere within the EU. Luxembourg’s Finance Minister Pierre Gramegna said in an interview this month that a number of London-based insurance firms, asset managers and financial technology companies have shown an interest in relocating.

The Financial Times reported the buyout firms’ plans earlier on Wednesday.

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