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| 1 minute read

Emerging Managers are Adapting to the New Funding Landscape

Funding remains the most daunting aspect for emerging managers. Attracting the attention of investors in a competitive environment remains a challenge.

To support the path to institutionalisation, independent service providers fill an important role, not only from a regulatory perspective, but also from an independence and expertise perspective.

Partnering early with established, reputable organisations regarding non-core activities affords emerging managers credibility and ensures best practice from inception to institutionalisation. This leaves emerging managers to focus on the portfolio management.

When partnering with a service provider, emerging managers should consider:

  • which non-core services, when outsourced, will add value to the offering
  • will the reputation of the servicing partner lend additional credibility to the offering
  • are services offered by the service provider scalable in the long run
  • expertise and depth of services of the servicing partner
  • the cost and fee structures of the provider

The views expressed herein are those of the author(s) and not necessarily the views of FTI Consulting, Inc., its management, its subsidiaries, its affiliates, or its other professionals. 

FTI Consulting, Inc., including its subsidiaries and affiliates, is a consulting firm and is not a certified public accounting firm or a law firm. 

“Investor expectations have evolved to the point where emerging managers need to have a path to institutionalisation early in their lifecycle. Investors aren’t waiting on the sidelines for new managers to produce a three-year track record, they’re making allocations earlier in a fund’s lifecycle, and with earlier support comes accelerated expectations,” says Williamson.

Tags

emerging managers, portfolio management, hedge fund, business transformation & strategy