June 2025 | The hedge fund industry faces a quiet revolution. Operational infrastructure – long viewed as a supporting function when just starting shop – has become the silent kingmaker in allocation decisions. What emerges from our comprehensive analysis is not merely rising standards, but a fundamental shift in how institutional capital evaluates emerging managers. From the regulatory pressures reshaping North American due diligence to Asia Pacific's contrarian approach prioritising experience over systems, this research reveals how operational excellence has evolved from necessary foundation to competitive weapon in the battle for institutional capital.