Among the areas explored by the survey:
- Fundraising timelines – from initial to both first and final closes
- Sourcing LP capital – where did the commitments come from?
- Hiring trends among emerging managers
- Importance of team composition versus track record from the LP perspective
- Anchor investor considerations
Key takeaways from this year’s survey include:
- Investors are most likely to invest in emerging managers to pursue superior returns compared to established managers, with over half of respondents agreeing that a key attraction of emerging managers is the chance to invest in more specialized strategies
- 89% of LPs will back a debut PE/VC fund. This number rises to 95% with a manager’s second fund
- Interest rate hikes, a recession in core markets, and high inflation were indicated as the most likely factors to impact performance over the next year by both emerging managers and investors
- When asked about the key challenges to raising a debut fund, emerging managers cited competition with more experienced managers as the number one issue
- LPs identified track record and composition of team as the most important factors in selecting emerging managers, with investment strategy in third place
Overall, the survey covered more than 70 data points. The Buyouts Emerging Manager Report can be downloaded at: https://bit.ly/3rTFPe0.
“The pressures emerging managers are facing are reflected in this year’s survey results from both LPs and GPs, who clearly see the universe of private capital fundraising transforming right before their very eyes” said Jeff Gendel, Principal at Gen II Fund Services. “Our partnerships with the industry’s leading emerging managers and LPs that invest with them reconfirm the importance of a cohesive team, strong track record and a clearly delineated investment thesis – and the imperative to engage with experienced service providers to help navigate the path to success. We thank the Buyouts editorial staff for their efforts to make this annual survey a must-read for the community.”
Graeme Kerr, Head of Special Projects at Buyouts, said, “Despite the challenging times, nearly 90% of investors are willing to back a debut fund. As with previous editions, this year’s data will serve as a benchmark on the status of the emerging manager market. We are fortunate to be able to produce this report in partnership with Gen II Fund Services LLC.”
Notes to Editors:
About Buyouts https://www.buyoutsinsider.com/
Today, Buyouts is the leading authority in North American private equity intelligence, data and trend analysis. Buyouts’ award-winning editorial and research teams have sources deeply rooted in the private equity market to provide exclusive insight on fundraising, capital sources, LP allocation strategies, investment performance data and LP/GP profiles.
About Gen II Fund Services, LLC http://www.gen2fund.com/
Gen II is a leading fund administration provider focused entirely on serving private capital asset managers and investors. Since its inception in 2009, the company has become one of the largest independent private capital fund administrators, with more than $1 trillion of private fund capital under administration. Gen II offers private fund sponsors a best-in-class combination of people, processes, and technology, enabling GPs to manage their operational infrastructure, financial reporting, and investor communications most effectively.
About the Report
The Emerging Manager Report, published by Buyouts in partnership with Gen II Fund Services, LLC, is the private equity industry’s primary source for PE/VC emerging managers and institutional investors with an appetite to back them. A total of 127 emerging managers and 58 institutional investors with a self-identified appetite for emerging managers were surveyed. The results are released annually.
Media Contact
Graeme Kerr, Buyouts, 44 20-3862-7491, [email protected], www.buyoutsinsider.com
Jeff Gendel, Gen II Fund Services, LLC, 1 212-408-0501, [email protected], https://www.gen2fund.com
SOURCE Buyouts
