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For Emerging Managers
Launching your first fund is hard. Finding capital shouldn't be. We specialize in connecting first-time and early-stage managers with the right institutional partners.
An emerging manager is a fund manager whose firm is still small or young, and each allocator draws the line in its own place. New York City's pension funds, for example, count hedge funds with under $1 billion in assets, or under a three-year track record at funding, as emerging (NYC Comptroller). Many first-time managers start well below ceilings like that, and they face more scrutiny: nearly 90 percent of investors in a 2021 CAIA survey said emerging managers need more intense due diligence (CAIA).
Emerging managers in numbers
Under $1 billion
The asset ceiling for emerging hedge fund managers at the New York City Retirement Systems, or under a three-year track record at funding (NYC Comptroller). Other programs set their own limits, compared in our guide to emerging manager programs.
16.23 vs 8.53 percent
Annualized returns of hedge funds under $500 million against larger peers, March 2020 to February 2025. The source is a post on Preqin's site sponsored by a prime broker, and it does not say whether returns are net or gross (Preqin, 2025).
42 basis points
The drop in performance associated with each additional year of fund age, with the edge concentrated in a fund's first two to three years (Aggarwal and Jorion, 2010).
1.27 years
The average track record investors required in a 2026 survey, and 58 percent would consider a flagship fund with one year of history or less (AIMA and Marex, 2026). A record built at a prior firm can help if you can attribute it to yourself; see our page for portfolio managers launching their own fund.
561 launches
Hedge fund launches across the industry in 2025, against 287 liquidations (HFR).
Questions
Do you work with first-time fund managers?
Yes. Fund I managers are a core focus. Most first-time managers do not yet have a standalone fund track record, and the application is designed around your strategy, background and deck rather than fund-level history alone.
What do seed investors look for in an emerging manager?
A differentiated strategy, an edge you can explain, a record you can attribute to yourself, and an operating setup that can pass due diligence. We cover this in detail in how seed investors evaluate emerging managers.
Which strategies do you consider?
Hedge fund, private equity and special situations strategies, including long/short equity, credit, macro, quant and real estate.
Do emerging managers outperform established funds?
Some studies find that younger and smaller funds have outperformed on average, though results vary by period and dataset. We summarize the evidence in do emerging managers outperform?
What counts as an emerging manager?
There is no single definition. Each allocator sets its own, usually by firm or fund size, fund number or track record. New York City's pension funds use under $1 billion in assets or under a three-year track record at funding for hedge funds. Our guide to emerging manager programs compares several.
How long a track record do allocators want?
Less than many managers assume. In the AIMA and Marex Emerging Manager Survey 2026, the average track record investors required was 1.27 years, and 58 percent would consider a flagship fund with one year of history or less.
Last updated: November 2026. Figures come from the linked studies and describe the market, not any single deal. General information, not investment, legal or tax advice.
Further reading: What a hedge fund seed deal actually costs, with sourced figures on revenue share, lockups and buyouts.
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