The largest hedge fund in the world, Bridgewater Associates LP has been approved to receive $22 million in grants from the state of Connecticut. The fund which has been founded by Ray Dalio in 1975 is an important employer in the state which has prompted authorities to put up a cash incentive for the company to remain headquartered in Westport.
According to the minutes of the state of Connecticut’s bond commission meeting, under the terms of the grant, Bridgewater Associates can receive $5 million cash and a $17 million loan. Borvided that the company expands in the cities of Westport, Wilton and Norwalk, and retains the 1,500 jobs while creating another 750 by 2021, the loan may be forgiven.
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The world’s largest hedge fund, which manages close to $150 billion has been courted by a number of states aside from Connecticut, with New York also racing to provide incentives for the firm.
While by some estimates Connecticut is the wealthiest state in the U.S., its government has been struggling to balance budgets in recent years due to the reliance of its economy on finance. In the aftermath of the 2008 financial crisis, revenues came crushing down.
House Representative Christopher Davis (R) and State Comptroller Kevin Lembo have actively opposed the measure as unaffordable.
This is not the first incentive that the state of Connecticut has been granting to financial companies, back in October 2014, the state has extended an agreement with Swiss bank UBS to forgive a $20 million loan if the firm keeps at least 2,000 employees in the state through to 2021.