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Preqin: Hedge Fund Launches at 24-Year Low

By December 19, 2024No Comments

The hedge fund sector is experiencing a significant decline in new fund launches, with 2024 set to hit a 24-year low, according to data from Preqin. Only 123 funds were launched by the end of Q3, a steep drop from the 2017 peak of 697. This slowdown is driven by challenging fundraising conditions in the U.S. and Europe and tighter regulations in China.

Funds focused on certain niches including insurance-linked securities and cryptocurrencies are bucking the trend. Multi-strategy funds have also demonstrated steady growth, increasing 4% annually since 2017.

The average hedge fund returned 10% through the nine months ended September 2024. Hedge funds have attracted $25.5 billion in new investments during Q3, even with $8.4 billion being distributed to investors over the past year.

Despite the decline in new fund launches, fund closures have reached their lowest point in a decade, signaling industry consolidation and adaptability.

You can access the full Preqin press release at Reuters.com.

John Weninger, CFP®

John Weninger, CFP®

John is a Wealth Advisor within the Family Wealth Management area of the Company. He is the first point of contact for our prospective clients, conducting introductory meetings with clients to discuss their family dynamic and wealth management needs. John assumes the role of the client family’s Chief Financial Officer and coordinates with the client’s current professionals (i.e. attorney, tax accountant, stockbroker, insurance agent) to provide an integrated wealth management plan and investment solution that is custom tailored to meet each client’s specific needs. John began his career at Merrill Lynch as an advisor assistant, serving the needs of families & small business owners. He was the founder of Vision Wealth Partners, a Wisconsin registered investment advisor and has been helping families and small-business owners with financial planning and investment management since 2011. His writing has been featured on CNBC, Yahoo! Finance, U.S. News and MyCompanyRetirementPlan.com. John received his Bachelor’s Degree from St. Norbert College majoring in Finance. He earned his Certified Financial Planner (CFP®) in 2017.