Emerging managers face a range of challenges after launching their new business. GPs must concentrate on performance but remain focused on a plethora of other issues, ranging from technology to compliance and how best to handle and grow their LP base.
Even at a time of turbulence in markets and rising interest rates, however, there are major reasons for optimism. Embracing the New, co-produced by Private Equity Wire and SS&C, reveals how allocators are still focused on the emerging manager opportunity—and provides critical insights to newer GPs on LP priorities.
It sometimes seems as if large and established managers attract all the new allocations. But this report, based on a new survey of over 140 LPs and GPs, shows that more than two-thirds are currently invested with emerging fund managers, drawn by their higher alpha opportunities or unique investment strategies. Often, the two overlap.
Innovation in technology is just as common for emerging as established managers, sometimes more so. Sixty percent of emerging GPs say they are scoping the use of artificial intelligence, for instance. Tech investment is mostly driven by efficiency and automation to reduce manual work for emerging managers, critical to reducing the burden on thinly staffed start-up teams.
This report reveals the current state of play when it comes to LP perspectives on emerging managers and looks at key trends that will prove all-important in the future—helping emerging managers take advantage of the huge opportunities that still exist.
SS&C Technologies enables alternative asset managers and investors to scale and focus on core competencies while streamlining and creating efficiencies across investment and fund operations. We provide global operations services, fund administration and technology for today’s largest fund managers, and have deep experience supporting new and emerging fund managers.