One of the top executives of private equity firm BC Partners is leaving the United Kingdom and relocating to Greece, as Athens leverages a new tax regime to attract wealthy investors and establish itself as a European financial hub.
BC Partners is one of the largest corporate buyout firms in Britain.
It was founded in 1986, as part of Barings Bank, and has participated in major corporate transactions, including the rescue plan for LIV Golf, which ultimately did not materialize.
Nikos Stathopoulos, Chairman of BC Partners for Europe, is relocating his base to Greece, according to persons familiar with the matter, as well as a relevant corporate filing.
The firm, which manages assets in excess of 40 billion dollars, plans to open an office in Greece and raise capital in order to make more investments in the country, according to one of the same sources.
A person close to BC Partners mentioned that the decision of Mr. Stathopoulos to move to Greece is connected to the business plans of the firm and is not due to tax incentives.
Both he and the firm declined to comment.
Established financial centers
Greece has essentially challenged countries boasting established financial centers, such as the United Kingdom, Switzerland, and the United Arab Emirates, by enacting a new tax regime aimed at encouraging investors to establish a substantive part of their operations in Athens.
In September, it became known that billionaire hedge fund manager Chris Rokos is also moving from the United Kingdom to Greece, following the introduction of tax incentives targeted specifically at private equity firms and hedge funds.
Executives who meet the relevant criteria and transfer their tax residency to Greece pay a 5% tax on bonuses and carried interest, namely the share in profits received as remuneration for successful buyout deals.
This rate is lower than the regular rate, which stands at 15%.
BC Partners executed its first investment in Greece 20 years ago.
In recent years, it has proceeded with several further investments in the country, via its primary investment fund, as well as a smaller investment vehicle managed on behalf of an institutional investor who wished to carry out investments in the Greek market, according to one of the same sources.
These deals include pet supplies retail chain Pet City and private education provider Alphabet.
An adviser to the Greek Finance Minister had been approaching Chris Rokos for months as he evaluated his options regarding relocation.
Nikos Stathopoulos, who is Greek, possesses strong connections in the country, according to people familiar with him.
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