Single-Client Hedge Funds Gain Ground as Investors Seek Greater Control

Separately managed accounts are attracting an increasing share of capital in the global hedge fund industry as major investors seek greater control over their money and access to specialised investment talent.

Assets managed through these single-client arrangements reached $255 billion at the end of 2025, representing a 20% increase from the previous year, according to a Goldman Sachs report. Growth in the segment has significantly outpaced the wider hedge fund industry over the past decade.

Goldman estimates that hedge fund assets managed through separately managed accounts have grown at an average annual rate of 13% over the past 10 years, compared with 5.5% for the broader industry. They now represent 7.4% of total hedge fund assets under management, while about half of hedge fund managers operate at least one such account.

The arrangements allow pension funds, sovereign wealth funds and other large investors to allocate capital directly to a manager while retaining greater oversight of the portfolio. They can also provide more flexibility when negotiating management and performance fees.

The growth is being driven partly by intense competition for investment talent, with large multi-manager funds increasingly using separately managed accounts to work with independent specialist managers.

The trend highlights a broader transformation in asset management as institutional investors demand greater transparency, control and customised investment strategies.