(Bloomberg) -- A net of 30 hedge funds opened in the first quarter, the most since 2017, in a sign that the industry is rebounding after two years of net liquidations.

That marks the third straight quarter in which startups outpaced closures, according to Hedge Fund Research.

The shift follows a shakeout at the beginning of 2020, when almost 500 funds shuttered as the pandemic roiled markets. Since then, accommodative monetary policy to buoy the economy boosted demand for alternative products such as hedge funds, with investors desperate for yield and protection against volatility.

The increase in the total number of funds combined with positive inflows and performance has helped industry assets approach a record $4 trillion, HFR said in a report Thursday.

Read more: Billion-Dollar Startups Show New Hedge Funds Are Thriving

At least four new firms are on track to reach or surpass the $1 billion fundraising mark. Fifthdelta, run by two former Citadel money managers, started in June with $1.25 billion, while Mane Global launched earlier this year with about $1.2 billion. Voyager Global began trading with close to $1 billion, and Deep Track Capital, which debuted in April, is poised to end the year with about $1.3 billion.

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