Dublin doesn't do it for hedge fund managers
Dublin might be the world's largest centre for hedge fund administration, but its calls to attract hedge fund managers have so far fallen on deaf ears.
Authorities and business leaders in the emerald isle are not satisfied with going for the top spot in fund admin: they've created a more accommodating regulatory environment in the hope of attracting alternative funds.
There's just one problem - getting the managers to move from London. "The majority of the skilled front-office employees live and work in London. Additionally, the London lifestyle that is enjoyed by many hedge fund managers will always be difficult to compete with," says Charlie Woolnough, director of business development at Fortis Investments.
A few hedge fund managers such as Appleton Capital Management have set up in Dublin, but these have spun out from Irish domiciled fund management entities. A smattering of investment houses have also set up ranges of alternative products, but the target is to attract the big players to Ireland, or encourage start-up firms to set up shop in Dublin.
Gavin Nangles, head of business development for State Street Ireland, adds: "There's no doubt that the ability to act with good people, a good legal framework and supportive tax and governmental framework is here. But then it's just a question of do they fancy living in Dublin?"
Woolnough adds: "The potential of over-regulation in the UK was once seen as the catalyst that might drive hedge fund managers offshore. However, to date, the FSA and the hedge fund industry in London, ably represented by AIMA, appear to have a very amicable and consultative relationship."
To add to the uphill struggle, other jurisdictions have recently changed their fiscal rules and regulations with the stated aim of attracting asset management companies.
The herd mentality seems to be keeping hedge fund managers in the Square Mile, says Mark White, a partner at Dublin law firm McCann Fitzgerald: "It is not any particular regulatory issue which prevents them from setting up in Dublin. Instead, it is rather that the hedge fund managers want to be located where the other hedge fund managers are - which is London."
