Emerging hedge-fund managers in AIMA/Marex's Emerging Manager Survey 2026 charge an average 1.43% management fee and 16.24% performance fee on flagship funds, and 87% use at least one listed alignment provision. On the investor side, 66% prefer commingled funds for emerging-manager access. Fees, alignment terms and vehicle choice each have their own basis and are best assessed separately.
What do emerging managers charge?
AIMA and Marex surveyed 180 emerging hedge-fund managers and 50 investors in the first half of 2026. The fee averages apply to flagship funds and exclude SMAs and related arrangements, which the report says may carry lower fees. No SMA fee average is given. [1]
| Term | 2026 | Comparison |
|---|---|---|
| Average management fee | 1.43% | 1.39% in 2024 |
| Average performance fee | 16.24% | 16.22% in 2024 |
| Management fee, launches within 12 months | 1.33% | Recent launches |
| Performance fee, launches within 12 months | 16.35% | Recent launches |
| Sub-$100m management / performance fees | 1.36% / 15.53% | Smaller managers |
| Managers using high-water marks | 80% | 77% in 2024 |
| Managers using hurdles | 36% | 31% in 2024; 21% in 2022 |
| Managers using clawbacks | 6% | 4% in 2024 |
| Any listed alignment provision | 87% | Multiple provisions possible |
| Average operating expense / TER | 0.99% | 1.00% in 2024 |
Source: AIMA/Marex, Emerging Manager Survey 2026, pp. 15, 17, 19, 23, 25, 28. Manager-reported. Averages use midpoint analysis.
Only 13% of managers charge management fees of 2% or more, and 29% charge performance fees of 20% or more. [1]
Recent launches charge a slightly lower management fee, at 1.33%, with performance fees of 16.35%. Managers below $100 million report 1.36% and 15.53%. The comparison set matters: a small or recent manager is best compared with its own cohort rather than the full-sample average. [1]
How do fees vary by region and strategy?
| Manager region | Management fee | Performance fee |
|---|---|---|
| Asia-Pacific | 1.51% | 16.60% |
| North America | 1.42% | 16.79% |
| United Kingdom | 1.40% | 16.33% |
| EMEA | 1.27% | 15.10% |
Source: AIMA/Marex, Emerging Manager Survey 2026, pp. 16, 18. Regions describe where managers are based.
By strategy, performance fees average 17.60% for multi-strategy, 16.60% for long-short credit, 16.40% for long-short equity and 14.40% for macro. Fee variation by region and strategy matters when comparing managers on a like-for-like basis. [1]
Which alignment provisions are common?
High-water marks are the norm, used by 80% of managers. Hurdles are rising: 36% in 2026, against 31% in 2024 and 21% in 2022. Clawbacks remain rare at 6%. Among sub-$100 million managers, 79% use high-water marks, 39% hurdles and 2% clawbacks. [1]
These are manager-reported adoption rates, not an investor preference ranking. The report gives no hurdle levels or detailed clawback terms, so the presence of a provision says little about its economic effect. Allocators confirm the calculation basis in the fund documents.
Do investors see fees as a barrier?
Fees matter, but they rank behind operational and business concerns. In the same survey, 60% of investors cite excessive fees as an allocation barrier, down from 63% in 2024. Operational diligence, administration or transparency concerns lead at 86%. A lack of recognised top-tier service providers is cited by 36%. [1]
Management fees, performance fees and the 0.99% average operating expense ratio have different definitions and denominators. They do not add mechanically into an all-in fee. Our guide to evaluating an emerging hedge-fund manager covers the wider barrier list.
Which vehicles do investors prefer?
For emerging-manager access, 66% of investors prefer commingled funds, 16% prefer SMAs and 18% would consider either. Roundtable participants said some smaller investors find SMAs administratively burdensome. [1]
Managers take a more flexible view: 41% prioritise reliable partners regardless of structure, 35% a commingled anchor fund, 13% managed accounts to accelerate AUM growth and 11% other priorities. That gap separates allocator preferences from manager fundraising objectives. [1] For the structural trade-offs, see separately managed accounts vs fund investment.
Where are emerging-manager funds domiciled?
| Domicile | 2026 share |
|---|---|
| Cayman Islands | 56% |
| USA | 16% |
| Other onshore | 11% |
| Other offshore | 8% |
| Ireland | 6% |
| Luxembourg | 3% |
Source: AIMA/Marex, Emerging Manager Survey 2026, p. 13. Manager vehicle domiciles, not investment destinations.
Cayman and the USA together house 72% of sampled flagships. Ireland's share rose from 3% in 2024 and Luxembourg's from 2%. Investor headquarters are 58% North America, 14% Asia-Pacific, 14% Europe excluding the UK, 12% UK and 2% elsewhere. Neither distribution measures geographic investment exposure. [1]
What do manager economics tell an allocator?
Average manager headcount is 9.53, against 6.1 for firms below $100 million. Average break-even AUM is $82.9 million, up from $70.1 million in 2024; sub-$100 million managers report $57.4 million. The report links staffing and infrastructure to expectations for governance, risk management, compliance and administration. [1]
These are aggregate figures, not viability thresholds for any firm. They frame a useful question: does the fee base support the operating standards investors require? Gnosis introduces institutional allocators to investment managers regulated in their home jurisdiction and evaluates those managers through Allocator IQ (AIQ). It does not advise on allocations, manage assets, hold custody or execute orders.
Frequently asked questions
What fees do emerging hedge-fund managers charge?
In AIMA/Marex's Emerging Manager Survey 2026, flagship funds average a 1.43% management fee and a 16.24% performance fee. Only 13% charge management fees of 2% or more.
Do most emerging managers use high-water marks?
Yes. 80% of surveyed managers use high-water marks, 36% use hurdles and 6% use clawbacks; 87% use at least one listed provision.
Are SMA fees lower than fund fees?
The report says SMAs and related arrangements may carry lower fees and excludes them from its averages. It gives no SMA fee average.
Do investors prefer SMAs for emerging managers?
Most do not. In AIMA/Marex's Emerging Manager Survey 2026, 66% of investors prefer commingled funds for emerging-manager access, 16% prefer SMAs and 18% would consider either.
Where are emerging-manager flagship funds domiciled?
Mainly in the Cayman Islands (56%) and the USA (16%), followed by other onshore (11%), other offshore (8%), Ireland (6%) and Luxembourg (3%).
For institutional investors. This article provides general information, not investment, tax or legal advice or a recommendation of any manager, strategy or structure. Survey figures describe the stated populations and periods and do not indicate future allocations or results. Past performance is not necessarily indicative of future results.
Sources
- AIMA/Marex, Emerging Manager Survey 2026: The next generation of hedge fund managers. Separate samples of 180 emerging hedge-fund managers and 50 investors, surveyed in the first half of 2026; fee averages exclude SMAs. pp. 6-7, 13-28, 31, 35, 37.