Data from Preqin shows the bulk - 72 percent - of the 2,306 funds which make up the industry have less than $1 billion in assets.
Along with the asset outflows, the number of new funds launching has also slowed: from 178 fund launches in 2010, just 83 launched in 2014, while year-to-date in 2015, that figure is 24, Preqin data showed.
"At the moment, you've got a strong tendency for M&A among fund of funds, because on their own, a lot of them are finding it hard to survive," Scordel said.