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bjbj Hedge fund in Monaco Hello, this is Richard Wilson. I want to share with you a short video
on the state of the hedge fund industry here in Monaco. I just got done speaking at the
Game 2011 Hedge Fund Conference. It s the biggest and oldest hedge fund conference in
all of Europe. There s about 800 people there, 300 investors, about 500 fund managers of
different types and it s a great conference. A lot of it is based on capital-raising to
get an advice directly from investors. And I learned while meeting with family offices
that are based here in Monaco and going to the conference and being here for a week,
a lot about the cities. I just wanted to share with you what the hedge fund industry is like
here in case you wanted to possibly move your hedge fund to Monaco or try to raise capital
for Monaco. I thought it might be helpful just to share what my experience has been
here in the city. So first of, this is a hub in Europe for ultra-high net worth individuals.
I say ultra-high net worth instead of high net worth because the cheapest studio condo
here cost about 1.2 million Euros or about 1.6M, 1.7 million US dollars to buy and that
s a tiny, tiny little condo. So you have to have a lot of money to buy a place here. The
result is that a lot of family offices, people who have sold businesses, people that run
large multinational businesses and like I mentioned single family offices are based
here because there is zero taxation or very little taxation based on how you re classified
by the Monaco government. But most people pays Euro taxes or 5% taxes by living here,
while in most other places you pay a lot higher taxes, like Switzerland. But Monaco is not
part of the EU so they get to avoid the recent directive which came out, which affects EU
hedge fund regulation, that s another advantage for them. And I think the taxes across the
world in first world countries are going to be raised and that places like this, Singapore,
Switzerland, other tax haven areas are actually -- you know going to greatly increase and
people are going to realize they could run their fund or live in many places around the
world as the world comes easier to move around in, to get more connected and these hubs are
just going to grow more and more popular. What I found out that s surprising here is
that although there s not many hedge funds based here, there are just a lot of investors
here and hedge funds loves to come here obviously because it s so central in Europe and they
can meet with investors so easily. From here you could easily get to Paris, you could easily
get to Switzerland, you could easily get to Luxemburg or Italy obviously. It s right next
door to Italy. So it s a pretty good location for being in when you re capital raising,
you know city targets. A couple other interesting facts, is that Monaco is only 0.7 square miles.
It s the smallest city in the world except for Vatican City. Another thing that I didn
t know before I came here was that basically, since 1996 hedge funds have been focusing
more on being based in Monaco but the main reason they have and opened up offices here
is that their operational cost would way up. If you re hiring somebody who has 5 years
or 7 years in capital raising experience or risk management experience, their knowledge
might be really valuable and your hedge fund might be making a lot of money, but you re
going to have to pay them twice as much as if you lived in a Geneva or Zurich or some
other cities such London or even New York because that s how much higher the real estate
cost are here. So the result is that lost of hedge funds come through the city, people
come here every year for a Game obviously like I was this week. But it s really more
of an investor hub than an active hedge fund manager hub unless the hedge fund manager
has already cashed out or has gotten to a huge size and they re just here for a part
of the year. So I hope you enjoyed this video on Monaco. It s a great place to come visit,
great place for your business, great place if you re looking to connect with investors
and it s a great place to come check out Game if you have time one year. Thanks for joining
me. It s Richard Wilson and we ll see you again next time. PAGE \* MERGEFORMAT gdFN
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