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1 Oct 2007

Growth in IPOs Help European Hedge Funds Gain Ground

According to a press release, the new edition of IFSL's annual report; Financial Market Trends Europe vs. US 2007, shows that in three quarters of indicators, 14 out of 18, financial markets in Europe have been growing faster than those in the US between 2001 and 2006.

The 14 indicators showing improvement in Europe included 8 out of 9 in sectors such as private equity and hedge funds. Funds raised by European private equity companies have moved up from half of funds raised in North America in 2004 to almost equal in 2006.

European hedge fund assets moved up from 12% of US assets in 2001 to 42% in 2006. Growth in European IPOs has been even more dramatic, increasing ten times between 2002 and 2006 and were well ahead of US IPOs in 2005 and 2006.

The short term trend in indicators between 2005 and 2006 was also positive, with business in Europe improving relative to the US in 11 out of 18 activities.

The trend over a number of years demonstrates how London, as the capital for many of Europe's most important wholesale financial markets, is gaining in importance as a global financial center.