A ray of hope shines on emerging managers in grim fundraising market
As LPs reserve most capital for well-known private equity brands, some new firms are nonetheless persevering in a slow fundraising environment.
That is one of the findings of the Buyouts Emerging Manager Survey, conducted in partnership with Gen II Fund Services, which was released this week.
However, in general, first-timers feel understandably pessimistic about their fundraising prospects, the survey found.
Only 5 percent of respondents strongly agree that LP sentiment for emerging managers is strong, Rob Kotecki said in his “seven takeaways” from the survey. Thirty-four percent strongly agree the market favors established players and 22 percent think that only emerging managers from top-tier firms are raising vehicles easily.
Because market conditions are so tough for new firms, fewer of them are...