At least 10 new hedge fund marketing firms were set up last year in London to raise money from investors for hedge fund managers. The new launches cap an extraordinary decade in which the number of players in this niche but lucrative market has increased more than eight-fold, according to research by placement agent Liability Solutions and Financial News.

Richard Watkins, chief executive of Liability Solutions, said there are now over 80 hedge fund placement agents in London. He said: "I think that 10 years ago, when we started, there were scarcely 10 firms."