Lux Capital is structured as a collaborative global network of executives and industry experts around a core team of international investment bankers who can be rapidly mobilized and assigned to specific business opportunities. Our fluid structure allows us to remain highly responsive to unique deals and adapt to rapidly evolving global markets and in particular, to targeted business opportunities as they arise. Irrespective of our informal character, Lux Capital complies with all required governance and compliance standards as well as other applicable regulations.
Lux Capital Corporation's network stretches from Toronto, New York, London, Amsterdam, Luxembourg, and Zurich to Dubai, Singapore as well as Beijing and Shanghai, providing access to the world's largest financial centers. In addition to our headquarters in Toronto, we have a major point of presence in New York and Luxembourg providing a unique financial bridge between North America and Europe for start-ups and SMEs.
Toronto, Canada
The annual ranking of international financial centers by the UK-based “The Banker” magazine places Toronto, Canada as the second largest financial center in North America and ranks 6th in the world. The Toronto Stock Exchange is the third-largest equity exchange in North America and the seventh-largest in the world with a market capitalization of $ 1.6 Trillion (2014). In terms of listed companies, TSX and TSX Ventures are the second largest overall and are global leaders in mining, oil, gas, and cleantech.
The Toronto region is the hub of the Canadian financial industry – banks, investment firms, pension funds, and insurance companies. Toronto is home to the headquarters of Canada’s five largest banks, three of which rank amongst the top 25 largest banks in the world by market capitalization. In 2014, for the seventh year in a row, the World Economic Forum ranked Canadian banks as the soundest in the world. Toronto also is the Canadian headquarters for the vast majority of foreign banks operating in Canada, including four of the world’s largest banks.
The Toronto region is home to two of the world’s largest life insurance companies, seven of the ten largest global hedge fund administrators, three of the top 50 global pension funds, headquarters of 12 securities firms, and nine of Canada’s top 10 mutual fund companies. Supporting the sector is a vibrant ecosystem that includes many of Canada’s top law firms, auditors, accountants, administrators, tech firms, and academic institutions. Within the diversity and breadth of Toronto’s financial sector are several enterprises that have developed specialized expertise over time, i.e. for incubators, start-ups, and small and medium-sized enterprises.
Luxembourg, Europe
Luxembourg is the second-largest investment fund centre in the world, after the United States. It is the premier captive reinsurance market in the European Union and the premier private banking centre in the Eurozone. A founding member of the EU that benefits fully from the principles of free movement of capital and freedom of establishment with the EU, Luxembourg has a track record of stability. Even in the face of challenges that arose from the global financial crisis, Luxembourg maintains low levels of sovereign debt, has one of the highest GDPs per capita, and retains a AAA rating. This has resulted in the domiciling of tens of thousands of investment holding, financing, and securitization vehicles, many of which form part of globally recognized corporate groups or hold the portfolio investments of leading international investment funds.
From its origins as a Euroloan centre, the city subsequently developed as a private banking centre and then, from the 1980s, as a leading domicile for investment funds. The success of this financial centre is founded on the social and political stability of the Grand Duchy and on a modern legal and regulatory framework that is continuously updated, inspired by regular consultation between the government, the legislator, and the private sector. Thus, over the years, specific regulatory frameworks have been created for alternative investment funds, venture capital investment funds, international pension funds, specialized investment funds, captive reinsurance companies, covered bond issuing banks, securitization vehicles, and family wealth management companies. This legal framework, combined with Luxembourg’s openness to the world, has attracted banks, insurance companies, investment fund promoters, and specialist service providers from all over the globe.
The Luxembourg financial centre is characterized by a strong culture of investor protection and rigorous anti-money laundering policies. Its specialist teams are multilingual and multicultural, with a long tradition of financial expertise and extensive knowledge of the needs of an international clientele.
Our firm strives for a modern corporate governance strategy that takes into account the interests of each shareholder. The shareholders are actively involved in any matters that are critical to the company’s continuity and success beyond the appointment of the Board and the annual accounts. We have assigned a Trust Office through which shareholders can announce a proxy and/or issue voting instructions. Each share in the capital of our firm gives the entitlement to cast one vote.
These voting rights can be exercised by the holder of the share. Shareholders who attend a shareholders’ meeting in person are entitled to cast votes at their own discretion on several shares equal to the number of shares that the shareholder holds on the relevant record date. Shareholders may also exercise their voting rights even if they do not attend a shareholders’ meeting by granting a proxy to a third party. When shareholders do not attend, have not been granted a voting proxy, nor issued voting instructions, voting is guided primarily by the interests of the shareholders taking into account their interests. The sale and transfer of shares are restricted to ensure the stability, consistency, and continuity of the undertaking.
The Board’s primary responsibility is to safeguard the breakthrough and growth of our client's business, as well as to protect the interests of the investors that have entrusted their capital to it. The Board also has to consider the growth of Lux Capital's shareholder value. The Board monitors business performance and conducts oversight on regulatory, legal, and fiscal compliance, statutory reporting, and implementation of social responsibility policies.
The Board consists of three directors, none of whom holds personal interests in the company that reasonably could influence their objectivity. The Board has drawn up a Charter that includes its duties, powers and working methods, and information on its relationships with the stakeholders of the company. All members have underwritten the company’s Directors Code of Conduct. All partners in the company have underwritten the company’s Employee Code of Conduct.
The Board has assigned special task forces to provide second opinions in support of tactical investment decision-making. The task forces consist of at least one Director in addition to outside independent experts. A task force provides recommendations to the Board on critical business issues like additional bond issues, asset purchases, project and construction plans, asset valuations, and exit strategies as well as policies and directives concerning risk. The four task forces are Due Diligence, Investments, Risk Management, and Market Strategy.
Part of our core business processes requires reputable service providers, such as specialized research centers, market research agencies, financial analysts, business lobbyists, engineering firms, valuators, and others. Our firm has streamlined workflows and communications with these parties. Our customers can therefore be assured of faultless operations, full regulatory compliance, reliable business advice, and safe and secure transactions. We utilize top-rated, accredited experts, including rating agencies, tax advisors, and law firms, for any statutory and regulatory issues.
Lux Capital Corporation is a financial innovator redefining funding with unique investment and risk management strategies. Share your vision, and let’s shape the future together.
