North American hedge fund asset growth projected to slow — Preqin - Pensions & Investments

Preqin's Future of Alternatives 2029 forecast projects a meaningful deceleration in North American hedge fund asset growth over the next six years, though the region will maintain above-average expansion relative to global benchmarks. North American hedge funds held $3.66 trillion in assets under management at the end of 2023, having grown at a 5.7% annualized rate since 2017. That expansion trajectory is expected to moderate to a 4.7% annualized growth rate through 2029, bringing total regional AUM to $4.81 trillion.

The projected slowdown reflects broader market dynamics and maturation within the alternatives space. While the deceleration is notable—representing a 100-basis-point reduction in annual growth—North American hedge funds will continue to outperform the global alternatives average of 4% annualized growth. This regional outperformance suggests continued institutional and capital flows favoring North American hedge fund strategies relative to peer regions, supporting ongoing but at a measured pace expansion.

The forecast signals a normalization of growth rates following the strong recovery and expansion cycle of 2017–2023. As hedge fund asset bases continue to expand and the competitive landscape intensifies, marginal growth rates naturally compress. The projected $4.81 trillion in regional AUM by 2029 represents meaningful capital deployment across North American hedge fund strategies, providing ongoing institutional investor exposure to alternative return streams despite the moderating trajectory.