Sound familiar?
“_The trend for small, diverse, first-time fund managers is to raise money from accredited investors. Once they have traction, they may attract family offices and corporations. Endowments may also follow. Bank of America has invested in SoGal’s second fund.
But pension funds typically write very large checks that would overwhelm small funds. Instead, these funds have created emerging-manager programs. Even when small, diverse, emerging fund managers have a track record with a first or second fund, pension fund emerging-manager programs put them through the wringer. But small fund managers don’t have the teams to undertake all the nonsense these programs require.”_
“_The trend for small, diverse, first-time fund managers is to raise money from accredited investors. Once they have traction, they may attract family offices and corporations. Endowments may also follow. Bank of America has invested in SoGal’s second fund.
But pension funds typically write very large checks that would overwhelm small funds. Instead, these funds have created emerging-manager programs. Even when small, diverse, emerging fund managers have a track record with a first or second fund, pension fund emerging-manager programs put them through the wringer. But small fund managers don’t have the teams to undertake all the nonsense these programs require.”_
