Inflows and positive performance are set to push the Australian hedge fund industry to more than 100 billion Australian dollars ($70 billion) in assets under management.

Assets managed by Australia's hedge funds have been rising fast, growing by more than 45% between 2012 and 2014.

"We're at an inflection point where subdued equity and debt markets are setting an extremely positive backdrop for hedge funds to become the fastest growing segment of the Australian investment management market," says Paul Chadwick, chairman of the Australian unit of the Alternative Investment Management Association (Aima).

Earlier this year, Funds Global Asia reported that a set of new laws called the Investment Manager Regime (IMR) in Australia could allow Australian hedge funds to attract more capital from overseas.

"Since its Investment Manager Regime was legislated earlier this year, we understand that a number of hedge fund management firms based internationally have been considering establishing operations in Australia," says Jack Inglis, chief executive of Aima, in a statement released this week. "The certainty and clarity provided by IMR allows commercial considerations to be explored more fully, which is enormously encouraging for industry growth."

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