According to a survey conducted by Preqin after Britain voted to
leave the EU, 7% of alternative asset managers are thinking about
moving their operations outside of the U.K. and another 17% are
unsure whether to change where they are based. London has long been
the base of choice in Europe for most private equity firms and
hedge funds. But if the U.K. leaves the EU without striking a deal
to participate in the single market, asset managers could find it
much more difficult to sell funds to investors on the continent.
Preqin also found that nearly one-fifth of fund managers planned to
reduce their investments in the U.K. over the next 12 months as a
result of the referendum. Investors in the alternative industry
have taken an even more pessimistic view, with 41% saying they will
invest less in the U.K. over the next 12 months, compared with just
9% who plan to invest more.
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