When one door closes, a window opens.
At least this is the hope of European hedge and private equity funds. The European Parliament and European Council have decided to impose the rules for banking compensation onto hedge funds and PE shops. Under the banking restrictions, 40% of bonuses would have to be deferred for three years, and a large amount would have to be allocated in the form of shares.
Hedge funds and PE funds are naturally not pleased, and have protested the EU's ruling, claiming that hedge funds haven't had to ask for bailouts and should be looked at differently than banks.
So, what are angry Europeans to do? Head southeast, of course. To Bahrain, more specifically. The tiny island is trying to build up its alternative investment industry and hopes to attract foreigners disillusioned with their home countries.
Where does everyone sign up?
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