The credit crunch had more impact on the Irish economy than on any of the international fund domiciles. Nonetheless the fund industry in Dublin is in good health. In the 15 years to 2007 Ireland’s GDP growth per capita was the fastest growing in the OECD. Its booming financial sector, and in particular the growth in asset management related activity, was an important reason for this. For a country that had become used to be known as the “Celtic Tiger” the crisis was a big shock.
Despite the woeful macro-economic background the Irish funds industry has come through recent turbulent period remarkably well. At the end of the first quarter of 2013 total funds under administration, domiciled and non domiciled, in Ireland reached $3,308 bn, which is a record. Other than in 2009 the Irish fund industry has continued to grow year on year since inception.
The Irish fund industry should benefit from AIFMD, as it has from the development of alternative UCITS funds. Some expect that there will be significant redomiciliation of offshore funds into the EU, particularly to Ireland, as a result of the Directive. Others believe that most managers will leave their existing funds offshore but will launch new ones for the European market from locations like Ireland.
Ireland has a very well developed fund servicing industry. A number of law firms from other jurisdictions have moved into Dublin over the last few years to compete with the local firms. And it has a particularly large number fund administrators. Many offshore hedge funds are administered in Ireland. Registration in Cayman and administration in Dublin is standard practice in the hedge fund business. Irish fund administrators are now located all over the world, not just in Ireland
Population (approx): 4.2 million