Hedge Funds Industry Practice

New Fund Structures and Investor Types Bring New Challenges

Citrin Cooperman's third annual Asset Management Survey Report, based on responses from more than 300 U.S. asset managers, finds that more than 70% are already raising or actively pursuing capital from each of four key non-traditional sources: strategic and corporate investors, retail and mass-affluent investors, defined-contribution plans, and sovereign wealth funds.

The report addresses the tax, compliance, and operational hurdles that stem from these new sources. And as liquidity pressures mount, it examines fundraising strategies, exit expectations, and AI adoption across private equity, private credit, venture capital, and hedge funds.  

What Hedge Funds Told Us

Explore how hedge funds are adapting their strategies and what these shifts could mean for your firm.

• Hedge funds are ahead of the curve on non-traditional capital. Fifty-five percent already raise capital from strategic or corporate investors — well above every other segment we surveyed. But the path isn't frictionless. Investor due diligence demands (42%) and regulatory or compliance complexity (40%) are the top obstacles to sourcing this capital.
• Forty-five percent expect an aggressive posture over the next 12 months, second only to private equity, and they're the segment most likely to point to credit availability (34%) and the political and regulatory environment (29%) as shaping influences.
• Hedge funds are investing in AI, but returns are lagging. Only 53% report positive AI ROI, compared with 71% across all surveyed firms. Half cite regulatory uncertainty as a barrier, more than 10 points above any other segment.