Cayman going after EuropeanHedge Funds
Having solidly secured itself as the hedgefund capital of the Caribbean, the Cayman Islands made anothergiant step when on Wednesday 25, September, the firm of Rothstein,Kass and Company secured a deal with a European hedge fund witha new assets value of $200million.
To ensure that the Cayman Islands maintainsits supremacy in this highly lucrative field, Mr. Peter Youngof Rothstein, Kass and Company (Cayman) and Mr. Joseph Holmanof the company's New Jersey office, have extended the marketingof the Cayman Islands as the preferred hedge fund jurisdictionin Europe.
In an interview with Cayman Net News,Mr. Young predicted that in about another 12 months there couldbe about 300 new funds for audit services and 50 new funds foradministration services.
Mr. Holman said the Cayman Islands offers a better professionalbase and a sounder monetary policy than other Caribbean countries.
"For years we have run a very successfulhedge fund practice in the US and we believe that we can takethat model to the Cayman and have that same growth," he said,explaining that having covered the markets in the United States,Rothstein, Kass and Company was looking for offshore opportunitiesand had actually considered Bermuda, but had a change of heart.
Stressing that the Cayman Islands has stabilityin its government, good laws, and tough anti-money launderingprovisions, he said: "We were going to Bermuda and were allset to go there, but we came here and were really impressed bythe people we met, and the reception and willingness of the Governmentto sit down and talk to us.
"(The Hon.) Mr. McKeeva Bush availedhimself and others and that type of reception was much betterthan what we got in Bermuda."
Mr. Holman and Mr. Young are optimisticthat this country will be able to enter the European markets andattract more business here.
"We are well known in the US but inthe hedge fund industry and the mutual funds industry. We arenot well known in Europe and we believe that the EU is a placewe can get a market share," said Mr. Young, adding that theyhave several proposals out right now with European investors.
He also stated that the attraction of thesefunds would provide tremendous economic benefits to the islandand business opportunites for fund administrators, banks, attorneysand an increase in jobs.
"After looking at the way things arestructured here we felt that we were safe in going out there asa firm and selling the Cayman Islands as a jurisdiction for hedgefund and mutual funds," Mr. Young said. "And there isno better measure for success in that in two months we have morethan 50 hedge funds registered here.
The future seems to be getting better andbetter every day."