26 July 2011 The number of new European hedge
fund launches is still running at historically very low levels,
but the average size of the new funds is at an all-time
That is the central finding of
the first-half 2011 new fund survey conducted by the
EuroHedge data and research team which shows that at
least 45 new offshore hedge funds were launched in Europe
during the first half of the year, raising a combined $5.2
billion in assets.
Although the number of new launches is down on the first
half of 2010, when there were 58 new offshore funds, the total
assets figure is almost 40% higher than the $3.8 billion raised
by new funds in the first half of last year.
Furthermore the average size of the funds launched so far
this year is nearly double at $116 million, compared
with $65 million last year.
The average size of this years new starts is higher
than it has ever been surpassing the $102 million
average new fund size seen in the first half of 2008 just
before the global financial crisis, which was the previous
peak, and almost three times the $44 million average size of
new funds launched in the first half of 2009.
No fewer than 13 of the new funds have launched with assets
of $100 million or more already this year, and the pipeline for
further significant launches in the second half of the year
also looks encouraging.
Together with the $2.6 billion raised by the 48 new
UCITS-compliant onshore European hedge funds that have also
been launched in the first six months of this year, the
combined totals for all onshore and offshore hedge fund
launches reach much more substantial levels with almost
100 new funds raising combined assets of nearly $8 billion.
Arguably this combined picture presents a fairer historical
comparison given that many managers (particularly the
more institutional asset management firms) are electing to
launch new funds in a UCITS format although a number of
the new UCITS launches are simply new onshore
versions of existing offshore strategies.
Even so, with the exception of the first half of 2009, the
combined new fund launch totals in Europe are lower than at any
time since 2003.
Taking the offshore and onshore hedge fund launches
together, the combined figures of 93 funds and $7.8 billion is
in line with the long-term yearly average over the 12 years
that EuroHedge has been compiling the new fund surveys. Since
2000, the average for first-half launches works out at 99 funds
and $7.9 billion in assets raised.
In terms of location, the UK remains the clear centre of
choice for both offshore and onshore hedge fund managers
accounting for 66% of the number of hedge funds launched and
90% of the assets raised, and for around 60% of the new UCITS
Nick Evans, editor of EuroHedge, commented: Our
research shows increased barriers to entry in the hedge fund
industry in the wake of the financial crisis. But the
rise in the average new fund size indicates that investors are
increasingly keen to back proven managers at a time of change
and opportunity throughout the financial industry. There have
been many high-quality launches this year, often starting with
significant seed investment from some very savvy investors, and
the pipeline looks strong for some big new launches in the
second half of the year too.
To read the full findings go to the EuroHedge New Fund
About EuroHedge and HedgeFund Intelligence
EuroHedge is published by HedgeFund Intelligence, the
leading provider of news, analysis and performance data on the
global hedge fund industry. The company provides dedicated
information on US, European, Asian and African single-manager
hedge funds as well as on hedge fund investors worldwide.
For more information contact:
Nick Evans, EuroHedge Editor, +44 20 7779 7355 / email@example.com
Del Jones, Merlin PR, +44 20 7726 8400 / +44 7787 183 306 /
Neil Wilson, Editorial Director, HedgeFund Intelligence: +44
20 7779 7359 / firstname.lastname@example.org