(FINalternatives) Contrary to conventional wisdom, most alternative investment management firms are able to turn a profit and expand with considerably less than $100 million in assets under management, according to a new survey of sub-$500 million managers by the Alternative Investment Management Association (AIMA) and boutique prime brokerage company GPP.
The joint survey of 135 global alternative asset managers found that the average break-even point is around $86 million in AUM, while around 30% are able to break even with $50 million in assets or less. Interestingly, break-even was found to be highest among global macro hedge funds – and average of $132 million in AUM – and the lowest for alternative credit fund managers, at $77 million in AUM.
