Capital raising as an emerging hedge fund manager has always been challenging and headwinds have been at full strength in 2022. How are they faring and cutting through to new investors? Hedgeweek’s latest Insights Report identifies the latest opportunities, and the techniques used to stand out from the crowd.
The capital-raising outlook for emerging hedge fund managers is - perhaps unsurprisingly - mixed. First, the bad news. With hedge funds' performance suffering in recent months, the fundraising environment is back to where it was before the pandemic: investors are taking fewer risks, strengthening their thresholds for investment, and pulling money from hedge fund products on a net basis.
Emerging managers say it’s been harder to win new business in 2022 than in 2021, with investors either backing off or doubling down on stringent investment thresholds.
While analysis of the fundraising environment yields a familiar result, the ways emerging managers differentiate themselves is continuing to evolve.