BERLIN - The German Cabinet on Aug. 20 approved a bill allowing institutional investors in Germany to buy shares of hedge funds and funds of funds directly. Direct investing in hedge funds is currently not permitted. The change is part of an overall investment banking reform bill.
Pending a Nov. 28 vote by the upper house of Parliament, the changes are expected to take effect Jan. 1. Estimates predict up €100 billion ($115.1 billion) in new hedge fund investments could result.