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Bailey McCann, Opalesque New York: Over 100 new hedge funds launched in Texas last year alone according to delegates at the recent Opalesque Texas Roundtable. Delegates cite the tax environment as well as the robust local economy as reasons for the spate of new growth last year.
"We see predominantly long/short hedge funds launching, but also credit, direct
lending, and more recently with the drop in oil prices, energy-focused high yield debt or credit funds," explains Burke McDavid, of law firm Akin Gump.
"I'm sure that there is also a significant percentage of
managers setting up quietly. The number of small funds here in Texas is growing like a weed because we enjoy a very
friendly economic environment here," adds Bryan K. Johnson, of Johnson & Company.
This point was echoed by Adam Rodman, of Segra Capital. "At launch we considered a number of different cities in which to base our firm. A large part of
the reason for choosing Dallas had to do with escaping the group think found in some of the larger financial cities, but
I would be lying if I said that the cost structure of operating a business in a place like Texas doesn’t make it extremely
appealing. Our due diligence, vetting New York, London or Dallas, showed that the operational costs in Texas would
be approximately 25% of those in New York and about 20% of those in London."
That significant cost savings may also be steering managers away from platforms which often tout lower costs as a sellin...................... To view our full article Click here
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