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Bailey McCann, Opalesque New York for New Managers Established managers have a significant edge in the downtrodden fundraising market-and with good reason. They have long track records and existing relationships with institutional investors. However, a recent report from PitchBook suggests there may be more value than some anticipate from emerging managers.
According to PitchBook data, the share
of US fund closings by "emerging" managers-defined as GPs with three or fewer
successful fund launches-has shrunk to 44.7% of total fund count and 15.7% of
total capital raised, down from 55.0% and 23.4%, respectively, for the 10 years
ending in 2019. Some analysts argue that these data point to a maturing market for alternative investments. While that's likely true, performance from established funds can often erode as it becomes difficult to sustain high returns at a larger scale.
According to PitchBook's analysis, that trend is prevalent in the buyout space where "top-quartile
performance of emerging managers has eclipsed the equivalent percentile of
established managers throughout our more recent vintage year buckets, while
top-decile and median performance were better in all but one grouping. While
more recent vintages have yet to fully realize their returns, the results suggest that
emerging managers by-and-large have represented higher upside potential in the
past 10 years or...................... To view our full article Click here
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