Buyouts and Gen II Fund Services Release Eighth Annual Emerging Manager Report
PR Newswire
NEW YORK, Dec. 12, 2024
The 2024 Emerging Manager Report, produced by Buyouts in partnership with Gen II Fund Services LLC, serves as a benchmark on the status of the emerging manager market.
NEW YORK, Dec. 12, 2024 /PRNewswire-PRWeb/ -- Today, Buyouts, in partnership with Gen II Fund Services, LLC, releases its eighth annual Emerging Manager Report, which once again spotlights the top-of-mind issues and concerns for new general partners when launching their funds.
Over 120 emerging managers were surveyed for this year's report. Based on multiple data points, the report offers managers' perspective on a broad range of topics from fundraising and fees and fund terms, to outsourcing and talent acquisition.
Among the big themes covered in this year's survey are:
- Market sentiment – gauging the confidence of emerging managers in the current climate
- Seeding portfolio strategies – the extent managers are using this approach to attract LPs
- Sourcing LP capital – where managers are finding their commitments
- Outsourcing – what mangers want most from third-party service providers
- Hiring trends – emerging managers' most sought-after skills and biggest challenges
Significant findings from the survey:
- Almost half of emerging manager respondents are using a seeded portfolio strategy to attract investors
- More managers are integrating AI-based solutions into their operations – 20% of respondents report this, up from 14% in 2023
- Interest rate decisions will have the biggest impact on investment performance in 2025, according to 82% of this year's survey respondents
- Three quarters of survey respondents believe that established managers continue to receive the bulk of capital and feel that LPs are less enthusiastic about committing to emerging managers
- Track record is perceived to be the most important factor LPs use to evaluate prospective managers
The Private Equity Emerging Manager Report can be downloaded at: https://bit.ly/41szvJU
"Emerging managers play a critical role in driving innovation and growth within the private equity ecosystem, but they also face unique challenges in today's competitive and complex landscape," said Jeff Gendel, Principal of Gen II Fund Services. "This year's Emerging Manager Report highlights key insights and strategies that are shaping the path forward for these managers, from leveraging seeded portfolio strategies to adopting AI-based solutions. At Gen II, we are proud to partner with Buyouts to deliver this vital resource, equipping emerging managers with actionable intelligence to navigate the fundraising and operational hurdles they encounter."
Helen Lewer, Senior Commissioning Editor, Special Projects, at Private Equity International, said, "We are delighted once again to publish this report in partnership with Gen II Fund Services LLC. Now in its eighth year, the survey data tracks the sentiments of emerging managers on a broad range of factors from fundraising to talent acquisition. This year's findings reflect the challenging fundraising climate; 55% of manager respondents are currently raising capital compared to 79% in 2023. Emerging managers also believe they face an uphill climb to win their slice of the capital pie with 60% of respondents perceiving competition from established managers as a major challenge, but demonstrating track record offers a competitive advantage to winning LP backing, according to three quarters of the managers surveyed."
Notes to Editors:
About Buyouts https://www.buyoutsinsider.com/
Today, Buyouts is the leading authority in North American private equity intelligence, data and trend analysis. Buyouts' award-winning editorial and research teams have sources deeply rooted in the private equity market to provide exclusive insight on fundraising, capital sources, LP allocation strategies, investment performance data and LP/GP profiles.
About Gen II Fund Services, LLC http://www.gen2fund.com/
Gen II is a leading independent fund administration provider for private capital asset managers and investors. Distinguished by its bespoke service offerings and robust technological infrastructure, the company has grown to become one of the largest independent private capital fund administrators since its inception in 2009, and now oversees more than $1 trillion of private fund capital.
Gen II's transatlantic operational reach is redefining excellence in the fund administration sector enabling it to provide unparalleled service capabilities to fund managers and investors globally. The company helps GPs to navigate complex international markets and regulations whilst effectively managing their operational infrastructure, financial reporting, and investor communications.
About the Report
The Emerging Manager Report, published by Buyouts in partnership with Gen II Fund Services, LLC, is the private equity industry's primary source for PE/VC emerging managers and institutional investors with an appetite to back them. A total of 126 emerging managers were surveyed between August 21 and October 3, 2024. The results are released annually.
Media Contact
Natalie Novakova, Buyouts, 1 (646) 356-4530 207, natalie.novakova@pei.group, https://www.buyoutsinsider.com
Jeff Gendel, Gen II Fund Services, LLC, 1 212-408-0501, jgendel@gen2fund.com, https://www.gen2fund.com
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SOURCE Buyouts