Consulting firm to the asset management community KB Associates on Wednesday said it is bullish on hedge funds and said it expects the sector to expand despite proposed tighter rules by different governments.

In fact, KB announced it has opened its London office located in Mayfair, to advise hedge fund managers who want to establish funds under a regulated regime.

The European Union is currently debating on the final draft of a new hedge funds regulation.

Part of the services KB Associates will offer include providing advisory and project management support to managers redomiciling funds into Europe. It will also provide operational advice to London-based asset managers.

KB Associates was founded in Dublin in 2003 and provides a range of advisory and project management services to asset managers of UCITS Funds, Hedge Funds and FOHFs; with a particular focus on Irish-domiciled funds.

Mike Kirby, principal of KB Associates commented: "The decision to establish a London office reflects two key trends. Firstly the increasing interest of managers in establishing regulated hedge funds, which despite the hype around UCITS are often still being established as regulated non-UCITS funds. The second driver is the demand we see from new managers for advice on a range of operational issues critical to the successful establishment of an asset management business. Given these trends there is now a unique opportunity in the London market for a genuinely independent consulting firm such as KB Associates which focuses exclusively on servicing asset managers."

The consultancy firm also disclosed of its plan to open offices in New York in the coming months.