Park Place poised to launch Italian hedge fund

London-based hedge fund Park Place Capital plans to launch its first hedge fund in Italy. The firm, which is currently awaiting approval from the Italian regulators, hopes to launch sometime later this year, said Philip Hands, a partner at the London-based firm.

Filippo Calda, general manager at Park Place in Italy, said the firm has approached regulators to gain approval to become an SGR – a type of institutional structure that will allow it to launch hedge funds in Italy.

Calda said he hopes the approval for the SGR will occur in late May. He will then need to gain approval for the individual fund prospectus. The first fund will be based on a long/short equity strategy, said Cald, who added that plans were still fairly embryonic.

Italy is the first major European country to allow onshore listings of hedge funds. To date, Italian retail investors looked abroad to invest in hedge funds - a practice that carries a 46% taxation penalty. The high taxation level has kept away many potential investors.