In Europe, a lost decade for new fund launches

Wed Jul 27, 2011


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The number of new fund launches in the first half of the year was roughly at the same level as 10 years ago, but the average assets raised per fund was the highest ever.


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 high.

That is the central finding of the EuroHedge new fund survey of first-half launches 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.

Although the number of new launches is less than in the first half of 2010, when there were 58 new offshore funds, assets raised by those funds is up nearly 40% from that period. Further, the average size of the funds launched so far this year is nearly double - at $116 million, up from an average size of $65 million in the first half of last year.

That brings the average size of this year's new starts to higher than it has ever been, surpassing the $102 million average new fund size recorded for 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.

At least 13 of the new funds that launched this year have already raised $100 million or more, and the pipeline for further significant launches in the second half of the year looks encouraging.

The full story:
EuroHedge new fund survey: Numbers down, but size and quality high

ISSN: 2151-1845 / CDC10004H