MFA Blog

New Preqin Data Highlights Growth of European Hedge Fund Managers

Posted on September 27, 2013

New data released this week from industry firm Preqin show that Europe-based hedge fund managers are growing and the industry itself has grown in the past year as well.  Single-manager hedge fund assets have increased $33 billion since the start of the year, reaching $582 billion.

The number of new Europe-based hedge fund managers has declined this year compared to last, but Preqin notes that with the Alternative Investment Fund Managers Directive (AIFMD) written into law in July, “many managers have delayed formalizing new businesses in order to see what impact the directive will have on a prospective operation.”  The report continued, “Now that the AIFMD has been finalized and local jurisdictions are confirming their guidelines, we could see an uptick in fund launches in the EU in the latter part of 2013.”

Some of the highlights from the data released by Preqin include:

  • The mean size of a Europe-based hedge fund is $431 million.
  • 38% of Europe-based hedge funds are long/short funds, the largest group by strategy.  Macro strategies are employed by 33% of funds.
  • The mean management fee of a Europe-based hedge fund manager is 1.6%.
  • 552 Europe-based hedge funds are structured under the UCITS regime.
  • 75% of Europe-based hedge fund capital is managed by firms headquartered in the United Kingdom.
  • 76% of Europe-based hedge fund capital is managed by funds over $1 billion in size.

Learn more about Europe-based hedge fund managers from Preqin’s recent report.