Fund raising for emerging managers faces more challenges than any other manager type, eliminating them from consideration by over 95% of allocators - but they are by no means insurmountable with the appropriate approach. Allocators’ standards for acceptance of emerging managers have become increasingly onerous over the past 15 years, some with expectations that can border on non-economic due to limited fee income. No longer do investors “take a flyer” based upon qualitative observations and limited management background of the principals. For emerging managers, their size dooms them to chasing an excessive number of small bite-size allocators, forcing a disproportionate time allocation to marketing and straining back office capabilities. Successful fund raising for emerging managers in particular requires creative strategies to overcome perceptions of limited staffing hampering management and that the manager’s prior track record is truly his own.
Contact us today for more information on how we can best raise capital for emerging managers.