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Alternative funds fear barriers after Brexit

Continuing to have access to European investors is a key area of the Brexit debate for private equity and hedge funds

Exclusion zone: UK funds are worried that a Brexit would badly affect their freedom to trade
Exclusion zone: UK funds are worried that a Brexit would badly affect their freedom to trade Photo: iStockPhoto

For private equity firms and hedge funds, the debate surrounding Britain’s membership of the European Union is split into two parts.

The frustration, cost and complexity associated with the Alternative Investment Fund Managers Directive - the piece of EU regulation governing both industries - dominates the first and largely unites the two asset classes. The second relates to trade links, uncertainty and volatility - and here opinions differ.

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