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The Stacking Up: Emerging Manager Survey 2026 - the fifth edition of the Emerging Manager Survey published over the last nine years - found that allocators are becoming increasingly willing to back smaller and newer hedge funds, even as operational scrutiny and due diligence standards continue to rise.

One of the clearest themes from the research is the continued institutionalisation of the emerging manager universe. Average headcount has risen to 10 employees per firm, while breakeven AUM increased to US$82.9m from US$70.1m in 2024, reflecting greater investment in infrastructure, compliance, technology, and investor relations.

Artificial intelligence is also becoming increasingly embedded across the emerging manager landscape, with 42% of managers now deploying AI across all business functions. However, only a small minority of investors currently view AI adoption as a decisive factor in allocation decisions.

Fees remain broadly stable, with average management fees rising slightly to 1.43%, while performance fees held steady at 16.24%.

Investor survey findings

At the same time, some emerging managers are earning greater investor interest from an earlier stage by adopting a stronger institutional mindset. The average minimum fund size considered for allocation has fallen to approximately US$94m, down from US$106m in 2024 and US$151m in 2022. More than half (54%) of allocators said they are willing to invest in funds with less than one year of track record, while 72% would consider allocating to firms managing less than US$100m.

Fund structure preferences are also shifting. Offshore vehicles continue to decline in popularity, while onshore funds and separately managed accounts (SMAs) are gaining traction as investors seek greater transparency, control, and customisation.

Despite greater flexibility around fund size and track record, allocators continue to place significant emphasis on operational robustness, with operational due diligence and concerns around strategy discipline remaining among the key barriers to investment.

Methodology

The fifth edition of the AIMA-Marex emerging manager series was expanded for the first time to include firms managing up to US$1bn in assets under management (AUM). The report is based on responses from 180 managers and 50 investors globally.

Lawrence Obertelli, Head of EMEA Prime Service Sales at Marex said: "The survey highlights a number of encouraging developments 'stacking up' for emerging managers, accurately reflecting what we are seeing through our day-to-day interactions. Emerging managers are launching with stronger institutional foundations than previous generations and scaling more effectively, resulting in allocators showing greater flexibility around factors such as fund size and track record. However, the bar for allocators remains high and fundraising is an ongoing challenge for managers across the industry. To attract investors, emerging managers need to demonstrate institutional-quality platforms, operational robustness and clear strategic differentiation from the outset."

Tom Kehoe, Managing Director, Global Head of Research and Communications at AIMA said: "Having tracked the emerging manager sector for almost a decade, one of the most encouraging developments we have seen is investors are becoming more willing to back managers earlier in their growth journey. The findings suggest that investors are increasingly focused on the quality of a firm's investment proposition and operational platform, rather than relying solely on measures such as fund size or track record. A healthy ecosystem of emerging managers is vital for the long-term success of the hedge fund industry, bringing fresh investment ideas, fostering competition and expanding choice for investors."

Press release:

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