Topic
Emerging managers
What an emerging manager is, why LPs back them, and what to weigh before committing capital to a Fund I, II, or III.
What this means
An emerging manager is typically a GP raising one of their first institutional funds — most commonly Fund I, II, or III. Strategies are usually narrower than established firms and access often depends on the manager's network, lived experience, or differentiated origination.
Why it matters
Some of the strongest performing funds historically have been early-vintage funds from emerging managers — but the dispersion is wide. Diligence has to focus on origination, judgment under uncertainty, portfolio construction, and durability of access.
Common questions
- Why back an emerging manager? — Access to overlooked deal flow, alignment with first-time GP economics, and the chance to develop a long-term relationship before a manager becomes oversubscribed.
- What are the risks? — Limited track record, less operational scaffolding, and concentration in a single thesis or geography.
What to watch for
- Track records that conflate angel deals, SPVs, and fund returns.
- Carry math that ignores fund-level recycling and reserves.