Emerging managers — newly formed investments funds — offer limited partners (LPs) a compelling investment opportunity in today’s environment, outperforming many other private investment segments, McGuireWoods Dallas partner Jon Finger, Pittsburgh partner Tom Zahn and New York associate Abdul-Rahman Lediju wrote in a June 12, 2023, story in PE Hub.
In their article, “The compelling argument for emerging managers,” the attorneys outlined key takeaways from the McGuireWoods 2023 Emerging Manager Conference, held at The Ritz-Carlton in Dallas May 16-17. The international conference, which attracted over 725 emerging managers and LPs, is the centerpiece of the McGuireWoods Emerging Manager Program.
Many endowments are revamping their portfolios, some with a bent toward emerging managers, the authors wrote. Emerging managers should engage early with endowments and understand how they might fit within such portfolios. Almost universally, LPs are encouraging emerging managers to develop a strategy to be differentiated.
“Regardless, an emerging manager should understand what they are good at, stay disciplined in the focus and not let fund size dictate strategy,” the trio added.
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