Hedged bets paid: Despite regulatory challenges, an inflow of new funds will boost revenue

Increasing demand from institutional investors has contributed to the surge in the Private Equity, Hedge Funds and Investment Vehicles industry's assets under management (AUM) and revenue over the past five years. To a lesser extent, high-profile initial public offerings of leading alternative asset-management companies, as well as small investors' greater access to the market, have contributed to industry growth over the five years to 2018. Over the five years to 2023, institutional investors will continue to increase their investments in alternative asset classes as a form of diversification and to achieve higher returns than traditional asset classes like fixed-income, which have struggled because of interest rates remaining below their historic average...purchase to read more.

Industry Statistics & Market Size
Revenue
$229bn
Annual Growth 13-18
7.2%
Forecast Growth 18-23
Profit
Employment
80,298
Businesses
20,647
Market Share of Companies
There are no companies with a dominant market share in this industry

Industry Threats & Opportunities

  • Increasing demand from institutional investors has boosted assets under management
  • Rising regulatory compliance costs and tax burdens have hampered profit margins
  • Rising expenses will lead investors to entrust their money with reputable money managers
  • Industry Report - Industry Products Chapter

    All the financial vehicles in this industry pool together funds from different investors. These financial vehicles differ in investment styles and objectives, asset types, use of leverage and regulatory requirements. They are ranked below by estimated assets under management (AUM) as a percentage of the whole alternative asset market.Private equity fundsPrivate equity funds' AUM has decreased over the five years to 2018 as their AUM growth was slightly outpaced by other asset managers. This has lead the private equities share of industry assets to decline during the period to 51.7% of industry AUM in 2018. Pri...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's in this report

    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
  • 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
  • Profit
  • 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 (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)
  • S&P 500 Value (2009-2023)

  • 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 nonmortgage 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
  • The 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)
  • An off-balance-sheet conduit of financial institutions. SIVs are used to hold assets and pass on income from those assets to investors.
  • What Our Customers Say

    Why buy this report?

    The Private Equity, Hedge Funds & Investment Vehicles industry market report contains data and analysis of the most influential current and future trends shaping the industry. IBISWorld’s in-depth industry market research is presented in a logical, user-friendly format, and provides growth and profit forecasts for a five-year outlook period.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
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    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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