Crunch time for prime brokers

German investors will be able to buy into hedge funds from January. Within five years, they will place up to E100 billion in this asset class, say industry experts. But prime brokers are not going to find it easy to join the party. Carola Schenk reports

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The German asset management market is huge, amounting to e947 billion. But it has been a laggard when it comes to hedge funds. German investors hold between €10 billion and €20 billion in mainly retail hedge fund index certificates and a few institutional private placements – for the time being, the only tax-efficient hedge fund investing vehicles for them. In comparison, global hedge fund assets total some $700 billion (€595 billion), including €100 billion sourced from Europe, mainly the UK

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