In London hedge funds are working hard to change their image, and one of the first steps they are taking is moving out of exclusive Mayfair and finding humbler digs in more ‘down-to-business’ parts of London.
Mayfair has long been the denizen of the hottest hedge fund firms, as well as the most expensive office neighborhood in London. Many hedge fund companies have decided to make lemonade from lemons as their more straightened financial circumstances force them into cheaper office spaces. Making the best of it, hedge funds are beginning to take on a more serious, business-like aura as they shed the swanky, mahogany paneling and other accoutrements of excessive excess.
The statistics show clearly the trend. Five years ago over 69 percent of hedge funds and private equity firms were located in Mayfair and St. James’s. In the last quarter of 2011 that number fell to only 51 percent.
“That figure is likely to fall to below half within the next twelve months,” said Elaine Rossall, head of London research at Cushman and Wakefield. “Costs are being scrutinized whatever industry you are in.”