Hedged in: An inflow of new funds will boost revenue, despite regulatory challenges and a higher tax burden

The Private Equity, Hedge Funds and Investment Vehicles industry continues to become an increasingly integral part of institutional investor portfolios and a mainstream part of the asset management market. Increasing demand from institutional investors has contributed to the surge in industry assets under management and revenue over the past five years. Over the next five years, institutional investors will continue to increase their allocations to alternative asset classes and strategies, while greater retail access to these same asset classes and strategies through ETFs and mutual funds will further drive up industry AUM and revenue...read more.

Industry Statistics & Market Size
Revenue
$184bn
Annual Growth 12-17
5.7%
Forecast Growth 17-22
Profit
Employment
57,506
Businesses
18,320
Market Share of Companies
There are no companies with a dominant market share in this industry
What Our Customers Say

Industry Threats & Opportunities

  • Increasing demand from institutional investors has boosted assets under management
  • Investors have increasingly perceived funds started by larger, well-established companies as less risky
  • Gradually rising expenses and competition will lead investors to entrust their money with reputable money managers
  • Industry Report - Starting a New Business Chapter

    Having sufficient assets under management (AUM) to attract institutional investment is a significant barrier for smaller private equity and hedge funds. A hedge fund may need at least $100.0 million in assets before it can successfully market itself to institutional investors. These funds may also need significant capital reserves at startup to hold them over a long period, possibly a number of years, before they can expect to attract significant assets. Funds may also need several years of performance history to attract institutional investment. As a result, projected growth in the number of funds will mainly come from established fund managers and large industry players, not new market players.Institutions normally undertake a review of funds before making investment decisions. Thi...purchase to read more.

    Additional Insights for the Private Equity, Hedge Funds & Investment Vehicles Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Private Equity, Hedge Funds & Investment Vehicles Industry are

  • Having a good reputation
  • Willingness to outsource when appropriate
  • Must comply with government regulations
  • IBISWorld analysts also discuss how external factors such as Demand from retirement and pension plans and Investor uncertainty in the Private Equity, Hedge Funds & Investment Vehicles industry impact industry performance..

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    What is the Private Equity, Hedge Funds & Investment Vehicles Industry?

    This industry is composed of private equity funds, hedge funds, closed-end funds, unit investment trusts and other financial vehicles. Entities in this industry manage securities or other assets on behalf of shareholders, unit holders or other beneficiaries to achieve high returns on targeted investments. This industry excludes insurance and employee benefit funds, open-end investment funds and trusts, estates and agency accounts.

    Industry Products
  • Private equity funds
  • Hedge funds
  • Closed-end funds
  • Unit investment trusts
  • Industry Activities
  • Hedge funds
  • Private equity funds
  • Closed-end mutual funds
  • Profit-sharing funds
  • Unit investment trust funds
  • Special purpose vehicles investing in collateralized mortgage obligations
  • Mortgage real estate investment trusts
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Demand from retirement and pension plans
  • Investor uncertainty
  • Access to credit
  • S&P 500
  • Initial public offerings
  • Regulation for the Investment Management industries
  • Yield on 10-year Treasury note

  • Current Performance
  • Institutional investors drive industry demand
  • Market fluctuations alter industry landscape
  • Hedge funds
  • Private equity
  • Chart: Revenue Growth

  • Industry Outlook
  • Blurred lines
  • Regulation
  • Table: Private Equity, Hedge Funds & Investment Vehicles Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Private Equity, Hedge Funds & Investment Vehicles Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Loan Administration, Check Cashing & Other Services
  • Portfolio Management
  • Retirement & Pension Plans
  • Consumers

  • Key Selling Industries
  • Custody, Asset & Securities Services
  • Finance and Insurance
  • Securities Brokering
  • Stock & Commodity Exchanges

  • Products & Services
  • Private equity funds
  • Hedge funds
  • Closed-end funds
  • Unit investment trusts
  • Chart: Private Equity, Hedge Funds & Investment Vehicles Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Pension funds
  • Other
  • High-net-worth individuals and wealth managers
  • Life insurance companies
  • Sovereign wealth funds
  • Banks
  • Funds of funds
  • Endowments and foundations
  • Chart: Major Market Segmentation for the Private Equity, Hedge Funds & Investment Vehicles Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Wages
  • Other
  • Chart: Cost Structure Benchmarking – Sector vs Private Equity, Hedge Funds & Investment Vehicles

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Private Equity, Hedge Funds & Investment Vehicles Industry

  • Industry Globalization
    There are no major players in this industry. This report includes analysis of other companies.
    Capital Intensity
  • Chart: Level of Capital Intensity for the Private Equity, Hedge Funds & Investment Vehicles Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Private Equity, Hedge Funds & Investment Vehicles Industry
    Includes:
  • Industry Revenue (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Wages (2008-2022)
  • S&P 500 Value (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Table: Industry Financial Ratios
    Alternative Assets
  • Commodities, derivative products, private equity, real estate, and other nontraditional assets.
  • Assets Under Management (Aum)
  • The assets (e.g. equities, fixed income, real estate and alternative assets) managed on behalf of clients.
  • Collateralized Debt Obligations (Cdo)
  • An investment-grade security backed by a pool of bonds, loans and other assets. CDOs do not specialize in one type of debt but are often non-mortgage loans or bonds.
  • Fund Redemption
  • When investors seek the return of their principals from alternative asset funds under the limitations of the fund issuer.
  • Hedge Fund
  • An aggressively managed portfolio of investments that uses advanced investment strategies to generate high returns. Hedge funds have a limited number of investors and require high initial investment.
  • Initial Public Offerings (Ipo)
  • The first sale of stock by a private company to the public. IPOs are issued by younger companies seeking the capital to expand, but also by large private companies looking to become publicly traded.
  • Leveraging
  • An act of investing with borrowed money that may magnify potential risks and returns.
  • Private Equity
  • Consists of investors and funds that make investments directly into private companies or conduct buyouts of public companies that result in a delisting of public equity.
  • Structured Investment Vehicle (Siv)
  • A form of off balance sheet conduit of financial institutions. SIVs are used to hold assets and pass on income from those assets to investors.
  • Why buy this report?

    IBISWorld’s industry research report on Private Equity, Hedge Funds & Investment Vehicles provides up-to-date sales and market data, allowing you to identify the product and customer segments driving revenue growth. The report identifies the leading companies in the industry, and offers strategic analysis of the key factors influencing the market. Our data forecasts are accompanied by full analysis to illustrate how the market is responding to dominant and emerging trends.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Private Equity, Hedge Funds & Investment Vehicles:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Private Equity, Hedge Funds & Investment Vehicles market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Private Equity, Hedge Funds & Investment Vehicles, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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