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SMAs’ hedge fund assets set to hit $255bn by end of 2025
The Reuters-cited Goldman analysis says SMA assets rise 20% from 2024 and reach 7.4% of total hedge fund assets.
Separately managed accounts are set to become a larger part of the hedge fund business, with capital managed through single-client SMA structures projected to reach $255 billion by the end of 2025, according to research cited by Reuters and analyzed by Goldman Sachs.
The report describes SMAs as dedicated accounts managed under an agreed mandate rather than commingled with other investors in a traditional hedge fund. It says this structure is attractive to investors that want more transparency and control, and it also creates room to negotiate management and performance fees.
Goldman’s Prime Insights and Analytics team said SMA growth has been outpacing expansion across the broader hedge fund industry, estimating 13% annualized growth over the past decade versus 5.5% for hedge funds overall.
The analysis also points to adoption beyond typical hedge fund platforms, noting increasing use by large institutional allocators such as pension funds and sovereign wealth funds. It adds that the share of managers with more than $5 billion in assets using an SMA rose by 6% between 2024 and 2025.