Assets in single-client hedge fund accounts totaled $255 billion at the end of 2025, up 20% from 2024, as the largest multi-manager firms increasingly use them amid a shortage of investment talent, a Goldman Sachs report says.
Goldman estimates assets managed through these accounts have grown 13% annually over the past decade, compared with 5.5% for the hedge fund industry overall. They now represent 7.4% of industry assets, and half of hedge funds run at least one; their use is growing among pension and sovereign wealth funds.
Separately managed accounts are designed to give investors more transparency and control over assets, and a chance to negotiate management and performance fees. The report said firms using them appeared to deliver about 0.4% higher returns than commingled investors. It also said most hedge fund investors are now willing to match single-client funds’ liquidity terms.
