After trauma of 2008, Italy still embraces hedge funds – and adopts UCITS

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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

Creatively (and 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