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A top dealmaker at private equity group Advent International is leaving the UK for Luxembourg, as Britain struggles to retain wealthy residents.
James Brocklebank, Advent’s head of Europe who co-chairs the firm’s global executive committee, is shifting his residency to Luxembourg, according to people familiar with the matter and an internal memo seen by the Financial Times.
Brocklebank, whose deals include Advent’s 2019 acquisition of British aerospace and defence supplier Cobham, joins other top investors and entrepreneurs who have quit the UK since the Labour government made the tax code less favourable to wealthy individuals and private equity executives.
Brocklebank’s move was confirmed internally this week ahead of Chancellor Rachel Reeves’ Budget, in which she will try to raise taxes without driving wealth out of the UK.
While the tax implications of Brocklebank’s relocation could not be established, he joins others who have quit the UK, including Revolut co-founder Nik Storonsky, steel billionaire Lakshmi Mittal and Egyptian industrialist Nassef Sawiris.
Others leaving for Luxembourg include Bertrand Coste, head of the family office for the Schlumberger oil dynasty.
“I will be moving my centre of gravity to continental Europe, and my focus will be on providing enhanced, hands-on support for our local teams across the region as well as the UK,” Brocklebank said in the internal memo sent to Advent employees on Monday.
The move had been agreed by Advent executives “to best support our continued growth”, he said, adding that he would still be in London regularly for important meetings.
While Advent already has an office in Luxembourg, London is home to its largest investment team. The US-based group has attracted attention and scrutiny in the UK for deals such as its £4bn buyout of Cobham, which it subsequently broke up.
“Luxembourg was the natural choice for a variety of reasons, including its location at the heart of Europe and its importance to Advent in the structuring of our funds and all our European deals,” Brocklebank added in his memo.
There is growing debate in the UK over the exits of wealthy individuals following a tax crackdown announced by Reeves last year.
The measures included an increase in tax on carried interest, the share of profits that private equity executives keep when they exit investments.
Reeves also confirmed the abolition of the “non-dom” regime that had allowed British residents who declared their permanent home as being overseas to avoid paying UK tax on foreign income and gains.
Many wealthy individuals leaving the UK have moved to Italy or the United Arab Emirates. In July, Luxembourg’s government submitted a draft law to parliament that would make the country more attractive to private equity executives.
Under the proposals, dealmakers who hold a stake of 10 per cent or less in a private equity fund for at least six months could pay no tax on their carried interest, according to EY.
Luxembourg has become an increasingly important country for Europe’s growing private capital industry, because of its legal and regulatory environment and low taxes.
Brocklebank has been at Advent since 1997, working on more than 20 investments into companies such as logistics group Evri and payments company Worldpay.
The Boston-based group has made more than 80 private equity investments in the UK, according to its website.
Advent and Brocklebank declined to comment.