According to hedge fund research firm Pivotal Path, 2024 is poised to witness the launch of 40 high-profile hedge funds by former portfolio managers from major investment firms. Veterans from several notable firms are initiating their ventures, aiming to leverage their past successes in the investment arena.
Industry insiders have said that this year’s figure will surpass the 26 launches from last year, suggesting a growing trend of seasoned executives seeking independence. The new funds will focus on a range of areas, including technology media, healthcare, and industrials.
The industry’s consolidation and the need for a strong pedigree are making it increasingly challenging for new entrants to attract investor interest. Despite a slight dip in investor appetite for early-stage launches, the demand for credit funds is rising, due to the high interest rates affecting the bond market. New funds like Parliament Holdings and Confido Capital are set to focus on credit investments, with aims to capitalize on distressed opportunities and multi-sector fixed income strategies, respectively.