Insights into the dynamics currently reshaping the landscape of the industry. The report includes an analysis of performance by fund management fee and estimation of hedge fund industry launches and liquidations.
Highest launch quarter since 1Q24 as industry capital surges;
Liquidations fall to lowest level in nearly 20 years;
Average incentive fees decline year-over-year;
Goldman Sachs, UBS, JPM, Morgan Stanley remain top choices for prime broker
CHICAGO, (October 16, 2025) – New hedge fund launches accelerated into 2H25 while historical low liquidations fell further, as investors positioned for falling geopolitical risk and lower interest rates, while M&A and AI strategic investment surged into 2H25. The estimated number of new funds launched in 2Q25 rose to 141, bringing the first half 2025 total to 262, on pace to top the estimated 479 launches in 2024, which was the highest annual total since 2021, according to the latest HFR Market Microstructure Report, released by HFR®, the established global leader in the indexation, analysis and research of the global hedge fund industry. Historically low liquidations fell further over the same period, with only an estimated 65 funds closing in 2Q25, bringing the first half total to 138, and pacing the year to fall below the estimated 406 liquidations in 2024, which was the lowest level since 2004. As previously reported by HFR, total hedge fund industry capital reached another record level to begin 2H25, surging to an estimated $4.74 trillion
The HFR Diversity Universe delivers the industry’s essential database of women & minority owned hedge funds. Our research now includes an overview of HFRI Women Index and HFRX Diversity Women Index.
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