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Hedge fund assets invested through separately managed accounts (SMA) have more than doubled since 2020 and growth is expected to continue over the rest of the decade, according to AFI’s new research report.
More than three-quarters of 100 hedge funds surveyed by AFI expect either moderate (66%) or significant (10%) growth in the SMA segment over the next three to five years.
Industry AuM in SMAs reached $255bn in 2025, up from $107bn at the start of the decade, according to GS Prime data. The annual growth rate in SMAs has outpaced wider hedge fund industry growth.
Hedge fund industry AuM in managed accounts, 2020–25
Growth has become a feature of this market due to increasing benefits delivered by SMA structures. “The next phase of SMA growth is being driven by investors seeking greater transparency, control and capital efficiency, especially across more complex alternative strategies,” said Paul Kiesling and Rob Swan, co-heads of Lighthouse Platform Services.
“Managed accounts are increasingly viewed not just as governance tools, but as investment infrastructure that can improve portfolio management, financing, and risk oversight.”
AFI’s survey also finds 58% of respondents now manage between one and 10 SMAs, underlining how managed accounts have become an increasingly important part of the industry.
For more information, download AFI’s new SMA report, produced in partnership with SS&C, and register for the webinar discussing its findings.