Launching a hedge fund has become easier in recent years, thanks to the rise of separately managed accounts (SMAs), according to a report by Business insider citing Kristin Kramer, Goldman Sachs’ Global Head of Capital Introduction.
After a prolonged slowdown in new launches, Hedge Fund Research recorded nearly 500 hedge fund debuts last year – back to pre-pandemic levels – with 121 more in the first quarter of 2025. A key driver, Kramer says, has been SMAs, which allow allocators to back managers directly while retaining greater control and transparency over portfolios.
The model has been popularised by multi-manager platforms such as Millennium, Qube, Squarepoint and Schonfeld, which provide external managers with dedicated SMA capital. More than 70% of multi-manager funds are now allocating externally via SMAs, up from about 50% in 2022, according to Goldman.
For emerging managers, the structure offers streamlined fundraising – often working with just a handful of large allocators instead of building a broad investor base. For allocators, SMAs deliver capital efficiency, tighter alignment, and near real-time transparency on risk and positions.
