What is Emerging Manager?
An emerging manager is typically a first-time or early-vintage fund manager — raising Fund I or Fund II — who lacks a long institutional track record. Emerging managers face higher fundraising barriers but offer LPs the chance to access potentially higher-returning early funds.
The term is most commonly applied to Fund I and Fund II managers who do not yet have a fully realized track record. They face a chicken-and-egg challenge: LPs want track records before committing, but the manager needs LP capital to build that record.
Many institutional LPs have dedicated emerging manager programs — separate allocations with more flexible criteria designed to give new managers a chance. Family offices and high-net-worth individuals are often more willing than pension funds to commit to emerging managers.
Also known as: first-time manager, Fund I manager