After trauma of 2008, Italy still embraces hedge funds – and adopts UCITS
Mon Sep 5, 2011
Kairos pioneered the creation of onshore hedge funds when new regulations opened up the country and has benefited from its independent stance
By Niki Natarajan
politically) Italy has always done things in its own way. When
it came to hedge funds, things were no different. Hedge funds
hit the Italian map relatively late with the introduction of
regulations in 1999 that permitted the creation of funds set up
and domiciled in Italy.
Although the authorisation process for each fund was strict,
it allowed firms to create structures that could be sold to
high-net-worth individuals and institutional investors with a
favourable tax treatment. These specially created onshore
società di gestione del risparmio (SGRs) allowed Italian
investors and asset management companies to invest freely in
offshore hedge funds for the first time.
The first firm to take advantage of the opportunity was
Kairos, which launched its flagship Kairos Multi-Strategy Fund
in 2001. Kairos is marking its 10 year anniversary this year
with $750 million in its flagship fund, $2.62 billion in
ISSN: 2151-1845 / CDC10004H
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