U.S. Hedge Fund Destination
Hedge Funds View U.S. as Attractive Destination
Hedge funds and private equity firms now view the United States as more attractive than Europe. The impending regulation and heavy taxes imposed in many European countries has made the U.S. more agreeable with alternative assets fund managers. Although the U.S. is working through its own financial regulation, many managers still expect the U.S. to be more favorable than EU countries.
“A lot of what’s happening actually makes sense,” said Brosens, a founding partner of Taconic Capital Advisors LLC. “We like New York. The regulatory framework is just better.”
Lawmakers in Washington and Europe are pressing for tighter rules for the financial industry after the collapse of the U.S. housing market triggered the worst economic crisis since the Great Depression. Regulators see the complexity, interconnectedness and leverage of hedge funds as a greater concern for the stability of the financial system than the size of the funds, a report by the International Monetary Fund and the Bank for International Settlements said in November.
European regulators said last year they may seek to restrict hedge funds’ use of debt and limit bonuses, rules that would apply to U.S. managers seeking to market themselves to European investors.
“It’s going to make it quite complicated,” Brosens said.
Source
Related to: US Hedge Fund Destination
Tags: US Hedge Fund Destination, American hedge funds, U.S. hedge funds, hedge funds relocating, european hedge funds, europe hedge funds, European Union, hedge fund regulation
