In recent years, an avalanche of regulation has significantly
increased the costs of compliance within the hedge fund industry,
with looming change and uncertainty ever present.
It is widely known that hedge fund assets, originating from
institutional investors, have grown significantly since the
financial crisis. The compelling and persistent theme is the
continued force and momentum with which the global hedge fund
industry is becoming increasingly institutionalised.
This trend brings due-diligence, risk-management and
transparency- management processes of funds and their managers to
the forefront, with the obvious result being an increase in hedge
fund compliance costs.
In October 2013, KPMG, the Alternative Investment Management
Association and the Managed Funds Association partnered to
undertake a comprehensive survey titled The Cost of Compliance,
which represents one of the largest global surveys of hedge fund
managers. The survey included the views of 200
