Is two years really too long to launch a fund?

What if you could do it quicker?

The dynamic sector of asset management presents many obstacles for managers during their fund launches, including shifting priorities, escalating pressures, and a diminishing pool of investors. In 2024, EY undertook a study on Fund Launches, uncovering difficulties encountered by asset managers across the EU and UK, as well as identifying key elements that significantly decelerate the time-to-market for new products.

The Fund Launch research draws on interviews with firms from Europe and the UK, EY expertise, and data from Monterey Insight on UK and Luxembourg funds.. In a nutshell, the research has led to the development of an industry benchmark and a framework for best practice. 

Asset managers share common ground in fund launch timelines, operating models and obstacles

The research revealed some intriguing, and possibly unanticipated, findings. It turns out that many fund launches are actually in line with the overall industry standards, which some managers might find surprising. Additionally, it was discovered that a significant number of asset managers operate with similar operating models, albeit unknowingly. They also face a shared set of challenges. Beyond these insights, the study also prompted inquiries into various aspects of fund launches, such as the team structures overseeing the processes, the roles of specialists and generalists in launches, the typical timelines juxtaposed with key launch hurdles, and common internal challenges relating to governance, operational flexibility, regulatory frameworks, scalability of delivery, as well as organizational culture and ways of working.