Key Findings on Emerging Fund Managers

This research report presents key findings from a survey conducted with over 140 Limited Partners (LPs) and General Partners (GPs) regarding their perspectives on investing in emerging fund managers. The report outlines significant trends and challenges faced by these investors, revealing that while 68% of LPs are currently invested with emerging managers, the likelihood of new allocations in the next year is low. The report details that LPs prioritize transparency, team expertise, and reporting quality when selecting GPs. Additionally, it highlights concerns such as due diligence constraints and compliance issues that serve as deal breakers for LPs evaluating emerging managers. The report also notes that 60% of GPs are considering artificial intelligence to enhance operational efficiency, while many face resource constraints that hinder their ability to allocate staff effectively. Overall, the findings underscore the cautious sentiment towards emerging fund managers amidst a challenging fundraising environment.