Over 80% of hedge fund start-ups say securing allocator capital is the biggest barrier they face, as new Hedgeweek research unearths a nervousness about the current capital raising environment.
In a global survey of hedge fund managers of all sizes, 64% of respondents said attracting investor flows is the single biggest challenge that emerging and start-up managers face. But among emerging managers themselves – defined as those with AuM under $250 million and track records of under five years – that number was even higher, at 82%, suggesting capital-raising for start-ups is a bigger barrier than the rest of the industry realises.
