Aureos execs leave London to avoid EU directive
AUREOS Capital, a private- equity firm investing in emerging markets, plans to move senior management to Singapore from London as the European Union moves to regulate the alternative-investment industry.
Regulations planned by the EU and a new top income-tax rate of 50pc are prompting hedge funds and private-equity firms to leave London for other cities.
The Alternative Investment Fund Managers Directive, proposed by the European Commission, would cost hedge funds and private-equity firms £4.6bn (€5.2bn) to implement, according to the UK Financial Services Authority.
Singapore, where the top tax rate for individuals is 20pc, has sought to attract the investment management industry by offering tax incentives and grants.
Aureos, which manages $1.2bn (€0.88bn), plans to make Singapore its Asian hub as the region will eclipse Africa as its biggest market in coming years, said chief executive officer Sivendran Vettivetpillai.
"There's a commercial rush behind it," he said. "We don't know which way it (the proposed European regulation) is going to go, but it's a concern," Mr Vettivetpillai said.
He added that the cost of doing business in London was already "exorbitant" and it was cheaper to hire professionals in Singapore.