New investors change dynamics

New investors change dynamics

By 2020, 23% of hedge fund managers expect pensions funds to be their primary source of capital.

Global Head of Hedge Funds

KPMG in the U.S.


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Primary sources of capital

The fact that investor demographics and types are changing should come as no surprise to managers around the world. According to our survey, most managers are expecting a significant shift in their primary sources of capital over the next 5 years.

Almost a quarter of all respondents said that they expected corporate pension funds and public pension funds (23 percent and 21 percent respectively) to be their primary source of capital by 2020. In comparison, only 13 percent pointed to high net worth investors and just 10 percent expected family offices to be their primary source of capital in the future.

Medium-sized funds

Medium-sized hedge funds seemed the most optimistic about their ability to attract institutional investors in the future while smaller funds were twice as likely to say that high net worth investors and family offices would be their primary source of capital by 2020, suggesting that smaller firms are poised to fill the gap as larger players pivot towards institutional investors.

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Demographic changes

As a result, almost two-thirds of hedge fund managers said that – over the next 5 years – they expect that the demographics of their clients will change to become much more diverse. Only 20% said their demographic will be more diverse.

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