John Aylward’s credit-focused hedge fund Sona Asset Management is planning to expand its London footprint, as strong asset growth and industry-wide hiring continue to drive demand for prime office space among alternative investment firms, according to a report by Bloomberg.

The firm is in discussions to lease approximately 30,000 square feet at Pegasus House in Piccadilly, according to people familiar with the matter. If completed, the move would roughly double Sona’s current office space at 20 St James’s Street. Negotiations remain ongoing and there is no certainty that a lease agreement will be finalised.

Under the proposed terms, Sona would occupy the lower three floors of Pegasus House, which is currently being redeveloped by Aviva Investors, the asset management arm of Aviva. Both Sona and Aviva declined to comment.

The potential expansion comes as hedge funds remain one of the strongest sources of demand for London’s premium office market. Alternative investment firms sought a record 474,000 square feet of office space last year, driven by firm performance, asset inflows and continued headcount growth, according to industry data.

However, a shortage of high-quality space in traditional hedge fund hubs such as Mayfair and St James’s has increasingly pushed managers toward nearby districts including Piccadilly.

The broader hedge fund industry also continues to benefit from improved performance conditions. Global hedge funds generated gains of approximately 12.6% last year — the strongest annual return since 2009 — according to Hedge Fund Research.

Founded in 2016 by former Deutsche Bank trader John Aylward, Sona Asset Management has grown rapidly from around $300m at launch to approximately $16bn in assets under management. The firm has established itself as one of London’s fastest-growing credit managers alongside peers such as Arini.

Sona’s flagship Credit Master fund, which manages roughly $11bn, delivered returns of 12.8% last year, Bloomberg previously reported.