Since 2012, the majority of new hedge fund management groups, 82, have formed in the U.K., compared to the 32 that formed elsewhere in Europe, according to data from Preqin.
In addition to having the most hedge fund management groups, the U.K. also accounted for approximately 50% of all hedge fund launches in Europe over 2013 and 2014 year to date. In particular, 2013 was the best year for the U.K. in terms of hedge fund manager launches with 38.
Between January 2013 and April 2014, U.K.-based hedge fund managers have seen a net increase in AuM of around $57 billion, while hedge fund managers based in France, Spain and Germany have seen a net decrease in assets over the same time period. Switzerland-based fund managers fared the second best of all European markets during this period, with these managers having a $10 billio net increase in AUM.
In all, firms headquartered in the U.K. now account for $423 billion in hedge fund assets, which is more than 10 times the amount of assets managed in any single other European country.
“Europe is experiencing a slowdown in terms of new hedge fund managers setting up business in contrast to North America, which has seen an increase in the number of new fund managers coming into market in recent years. This can be partially attributed to the AIFMD regulation within Europe, which is deterring some prospective new firms setting up a hedge fund business in the region,” says Amy Bensted, head of Hedge Funds Products at Preqin. “However, one country within Europe shows no signs of sluggishness—the U.K. The U.K. has the most hedge fund managers and the highest assets under management in Europe and in contrast with the continent overall, new fund manager growth in the U.K. remains strong, with London acting as the nucleus for the U.K. hedge fund industry.”
While Most of European Hedge Fund Market Declines, U.K. Rises
Since 2012, the majority of new hedge fund management groups, 82, have formed in the U.K., compared to the 32 that formed elsewhere in Europe, according to data from Preqin.