Hedge Funds, Private Equity Funds and Sovereign Funds

The article is aimed at describing the Italian legal framework relating to hedge funds and private equity funds. Furthermore, the paper looks at the “social role” of hedge funds and private equity funds, in particular by means of an analysis of the role played by the same in the Italian market. Of course, the current dominant opinions with respect to the issue are widely divergent. On the one hand, private equity funds state themselves that they mainly offer management services, with an equity investment to maximize their returns. On the other hand, hedge funds and private equity funds have been accused of destroying firms through excessive leverage and appropriation of financial substance. The purpose of the article is to explain what is the prevailing opinion on this matter with specific reference to the Italian jurisdiction.