Emerging manager programs are usually described as a door for new firms. Read the published criteria side by side and a different picture appears. The programs are built to find managers who can one day run money for the pension's main portfolio, and they favor firms that are already most of the way there. Knowing that in advance can save a first-time manager months of the wrong conversations.
We cover only programs we could confirm from the pension fund's own current page or, where noted, a dated news report. Our reading of the criteria comes first; the program-by-program details follow.
"Emerging" means smaller than the pension's usual managers, not new
A program's definition tells you who it was built for, and these definitions describe firms with real assets. Each fund writes its own, combining firm or fund size, fund number and sometimes ownership or track record.
| Program | Hedge funds or public markets | Private equity |
|---|---|---|
| New York City Retirement Systems | Hedge funds under $1 billion AUM and/or under a 3-year track record at funding; public markets sub-managers generally under $2 billion | Primarily Funds I to III, raising up to $1 billion |
| CalPERS | Public assets: AUM of $5 billion or less | Fund I to III, fund size of $2 billion or less |
| Texas TRS | Firms managing less than $3 billion | Preference for funds under $1 billion; fourth institutional fund or earlier |
| Maryland (Terra Maria) | Small cap equity under $5 billion; other equity under $8 billion; fixed income under $12 billion | Fund I to III and under $2 billion AUM at investment |
| New York State Common Retirement Fund | Majority owner-managed, verifiable track record in the proposed strategy; "seed and early" firms typically managing institutional money for under five years | |
A hedge fund running $900 million qualifies in New York City. A Maryland fixed income manager can approach $12 billion and still count. A manager launching with its own money and a few early investors is not near the edge of these ranges. It is far below them.
New York City's hedge fund test is the one to read closely. Its "and/or" wording reads as though a short track record could qualify on its own, but the program's minimum criteria still ask for institutional operations and an existing capital base.
So "emerging" should not be read as "first-time." The ceiling describes the firms you will be compared with, and it is safer to assume the strongest candidates in any program sit well above you on assets.
Often the allocator is the program partner, not the pension
Most of these programs put an outside firm between the pension and the manager, and that firm does much of the selecting. New York City invests in public markets through fund-of-funds that select and monitor sub-managers at least quarterly. New York State's program partners "assist in the timely deployment of capital, perform due diligence and recommend managers." Connecticut assigns a partner to each asset class and tells managers to contact that partner first. The published structures fall into four categories:
- Fund-of-funds and managers of managers. An outside firm builds a portfolio of emerging managers for the pension, as New York City does in public markets.
- Program partners and advisors. Named firms source, diligence and recommend managers, as at CalPERS, Maryland, Connecticut and New York State.
- Separately managed accounts. A dedicated account run by an outside firm for one pension, as with Barings in New Jersey and Adams Street at SBCERA.
- Direct allocations and graduation. Staff invest directly, and managers who scale can move into the main portfolio.
Where a pension names a partner for your asset class, treat that firm as the allocator: its diligence and portfolio construction are what you will be measured against. Where it does not, follow the fund's own instructions. New York City, for example, asks managers to contact the relevant staff member and asset class head, and its consultant for the asset class.
A program's check size implies a fund size, so seed comes first
Texas TRS lists seeding arrangements among its investment types, but most of these programs are not set up to be a fund's first money, and the published numbers show why. Texas TRS says first-time investments typically range from $10 million to $30 million. New Jersey was reported in 2024 to write checks of up to $25 million while preferring not to exceed 20 percent of any one fund. A full $25 million check within that limit implies a fund of at least $125 million. The same report put typical emerging manager funds in New Jersey's program at $100 million to $1 billion. SBCERA planned $20 million to $25 million per fund. New York City asks for "a broad institutional capital base with significant General Partner investment."
A program that will not be more than a fifth of a fund, or that wants other institutions already invested, is unlikely to be the money that launches it. Something usually has to come first. Outside the pension system, the other institutional source of day-one capital is seeders. Seward & Kissel's study of 2025 seed deals found institutional investors dominate the seed market, with seed capital split nearly evenly between hedge funds and private equity or private credit (Seward & Kissel, July 2026). Seeders typically take a share of the management company's revenue in exchange. Our piece on seeding, GP stakes and first-loss capital compares those structures.
In our view the usual sequence is the manager's own commitment, then seed and early capital, often including family offices, then programs. Each stage builds the base the next one sizes against. See our guide to raising capital from family offices for the middle step.
Programs lower the size bar, not the quality bar
The concession these programs make is on size and age. Nothing in the published criteria suggests one on operations, and Maryland says it underwrites Terra Maria managers to "the same rigorous due diligence and investment standards" as any other investment. Reading the criteria side by side, five requirements recur:
- A fund that fits the size and number tests. Usually Fund I to III, under a set fund or firm size.
- A track record the program can verify. New York State asks for a verifiable record in the proposed strategy. New York City's hedge fund test allows under three years at funding.
- Institutional operations. New York City requires institutional-quality operations with reputable administrators and auditors.
- Independent ownership. New York State requires majority owner-managed firms; Rhode Island's proposal specified independent, founder-led or majority employee-owned firms.
- Other capital alongside. New York City asks for a broad institutional capital base and significant GP investment. New Jersey prefers to stay under 20 percent of a fund.
The operation has to exist before the approach, not after it. An administrator, an auditor, compliance and a verifiable record in the strategy you are pitching are the price of entry, and a plan to put them in place with program money has the order reversed.
The programs are built to graduate managers
Several of these funds report graduates to their main portfolios, and the numbers show how seriously they take that path. Texas TRS reports $6.5 billion committed to 274 emerging managers since 2005, plus a further $5.6 billion committed to program graduates: nearly as much again. New York State reports seventeen managers that have graduated to direct investment. New York City's successful public markets sub-managers can move to direct mandates. New Jersey's main portfolio was reported to take graduates able to absorb $100 million to $200 million.
That changes the pitch. A program allocation is best presented as the first stage of a long relationship, with a credible account of how the firm reaches a size the main portfolio can use. A manager with no visible path to that size is asking to stay a small line item.
Hedge fund managers have fewer doors
The programs reviewed here lean toward private markets, and the recently launched ones lean further. Of them, only New York City and Texas TRS name hedge funds explicitly, and TRS lists seeding arrangements among its investment types. Connecticut covers hedge-fund-style risk-mitigating strategies through K2 Advisors. The three efforts here launched or proposed since 2022, New Jersey's, SBCERA's in 2025 and Rhode Island's 2026 proposal, are all private markets.
Among these programs, a hedge fund manager's list is short: Texas TRS, New York City, and Connecticut for trend, alternative risk premia or long volatility. That leaves seed and early capital carrying more of the load for a hedge fund than for a private equity fund.
The programs, in brief
New York City Retirement Systems
The program covers public markets, private equity, real estate, opportunistic fixed income and hedge funds. Managers are told to contact the relevant staff member and asset class head with marketing materials, a PPM and a short fund overview, and to contact the consultant for their asset class (NYC Comptroller).
New York State Common Retirement Fund
The state fund says it has committed $11.6 billion to its program and invests with emerging managers directly or through managers of managers and program partners (Office of the State Comptroller). Its definition is qualitative: majority owner-managed, a verifiable track record in the proposed strategy, and an institutional-grade operation (definition and life cycle). Its 20th annual Emerging Manager and MWBE Conference is scheduled for February 12, 2027, in Albany.
CalPERS
CalPERS runs an Emerging & Diverse Manager Program across private equity, private debt, real assets and public markets, and announced a $1 billion commitment in 2023 to its private equity emerging and diverse manager fund program. GCM Elevate and TPG Next are listed as program advisors, and managers can also use the fund's investment proposal submission page at any time (CalPERS).
Teacher Retirement System of Texas
Established in 2005, the program's $6.5 billion has gone to 274 managers across 476 investments in private equity, real estate, energy, natural resources, infrastructure, long-only and hedge funds. Investment types include fund commitments, co-investments, fundless sponsors and seeding arrangements. The contact is a shared inbox, and the TRS/ERS Emerging Manager Virtual Conference is set for February 9, 2027 (Texas TRS).
New Jersey Division of Investment
New Jersey launched its program in private equity in April 2022 on a platform of separately managed accounts, proposing up to $250 million for a first account with Barings, spread across about 10 to 25 underlying funds, with a focus on early- to mid-stage private equity (NJ Treasury, April 2022). The 2024 terms on check size, concentration and graduation cited above come from a later profile (Top1000funds, May 2024).
Maryland State Retirement and Pension System: Terra Maria
Terra Maria covers every asset class in the system's portfolio. The board adopted a formal Emerging Manager Policy in 2024, and Attucks Capital Management is the program partner (Maryland SRA).
Connecticut Retirement Plans and Trust Funds: Ci3
The Connecticut Inclusive Investment Initiative is the state's restructured emerging and diverse manager program. Its partners are Leading Edge for domestic equity, Rock Creek for emerging markets equity, fixed income and private credit, K2 Advisors for risk-mitigating strategies such as trend, alternative risk premia and long volatility, GCM Grosvenor and Top Tier Capital for private equity and venture, and GCM Grosvenor for real estate. Managers are asked to contact the partner for their asset class and reference Ci3 (Connecticut Treasurer).
San Bernardino County (SBCERA) and Rhode Island
SBCERA's board approved an initial $200 million for its Headwaters Fund in May 2025, managed by Adams Street Partners as a separately managed account, targeting 8 to 10 first-, second- or third-fund private equity managers over three years at $20 million to $25 million each (Infor Capital, May 2025). Rhode Island's State Investment Commission held an emerging manager discussion on May 27, 2026 (agenda). The presentation posted with that meeting outlines $200 million or more over three to five years across 15 to 20 private markets managers, no more than $15 million per fund, for new firms raising a Fund I, II or III of $1 billion or less, with a request for information planned for mid-2026 (presentation). It was a proposal at that stage, not an approved program.
Frequently Asked Questions
What is an emerging manager program?
A dedicated allocation by an institutional investor, usually a public pension fund, to smaller or newer investment firms, defined by size, fund number or track record thresholds that each program sets itself. Programs invest directly, through fund-of-funds or program partners, or through separately managed accounts run by an outside firm.
Which pension funds have emerging manager programs?
Among those with current public program pages: the New York City Retirement Systems, the New York State Common Retirement Fund, CalPERS, the Teacher Retirement System of Texas, the Maryland State Retirement and Pension System (Terra Maria), and the Connecticut Retirement Plans and Trust Funds (Ci3). New Jersey's Division of Investment and San Bernardino County's SBCERA have private equity programs, and Rhode Island's State Investment Commission discussed one in May 2026.
What counts as an emerging manager?
Each program sets its own definition. For hedge funds, the New York City Retirement Systems use under $1 billion in assets and/or under a three-year track record at funding. Texas TRS generally uses firms managing less than $3 billion. For private equity, CalPERS uses a first, second or third institutional fund of $2 billion or less.
Should a first-time manager approach an emerging manager program at launch?
Usually not as the first source of capital. Published size ceilings run from $1 billion to as much as $12 billion, Texas TRS says first-time investments typically range from $10 million to $30 million, and New Jersey prefers not to exceed 20 percent of any one fund. In our view, most managers need their own commitment and seed or early capital in place first, then approach the program partner for their asset class.
Do emerging manager programs invest in hedge funds?
Some do. The New York City Retirement Systems and Texas TRS list hedge funds explicitly, and TRS lists seeding arrangements among its investment types. Connecticut's Ci3 covers risk-mitigating strategies such as trend and long volatility through K2 Advisors. Several newer programs, including New Jersey's and SBCERA's, are private equity only.
How much do emerging manager programs invest per manager?
Where it is published: Texas TRS says first-time investments typically range from $10 million to $30 million; New Jersey writes checks of up to $25 million and prefers not to exceed 20 percent of any one fund; SBCERA's program planned allocations of $20 million to $25 million per fund.
How does a first-time manager apply to an emerging manager program?
There is rarely an application form. Programs typically direct managers to a named program partner for their asset class, a staff contact or shared inbox, or a general investment proposal submission page, as CalPERS does. Texas TRS and the New York State Common Retirement Fund also hold annual emerging manager conferences.
How we know this
Sources
- New York City Comptroller, Diverse and Emerging Manager Strategy: program page. Source for: asset class thresholds including hedge funds under $1 billion and/or under 3 years; fund-of-funds structure and graduation; minimum criteria; how to approach staff and consultants.
- New York State Office of the State Comptroller, Emerging Manager Program: program page and definition and life cycle. Source for: $11.6 billion committed; program partners; seventeen graduates; qualitative definition; February 12, 2027 conference.
- CalPERS, Emerging & Diverse Manager Program: program page. Source for: definitions by asset class; $1 billion private equity commitment in 2023; GCM Elevate and TPG Next as advisors; proposal submission.
- Teacher Retirement System of Texas, Emerging Managers: program page. Source for: under $3 billion definition; $6.5 billion to 274 managers across 476 investments; $5.6 billion to graduates; asset classes and seeding arrangements; $10 million to $30 million first-time investments; February 9, 2027 conference.
- New Jersey Department of the Treasury, release of April 27, 2022: release. Source for: SMA platform; up to $250 million with Barings; 10 to 25 underlying funds; early- to mid-stage focus.
- Top1000funds, New Jersey opens up to Next Gen managers (May 2024): article. Source for: checks up to $25 million; 20 percent cap; $100 million to $1 billion typical funds; graduation at $100 million to $200 million.
- Maryland State Retirement Agency, Terra Maria Emerging Manager Program: program page. Source for: asset classes; thresholds; 2024 Emerging Manager Policy; Attucks Capital Management as program partner; due diligence standard.
- Connecticut Office of the Treasurer, Connecticut Inclusive Investment Initiative: program page. Source for: partners by asset class; how to make contact.
- Infor Capital, SBCERA launches $200 mn PE program to back emerging managers (May 2025): article. Source for: $200 million Headwaters Fund; Adams Street SMA; Fund I to III definition; 8 to 10 funds at $20 million to $25 million.
- Rhode Island State Investment Commission, meeting agenda for May 27, 2026: agenda, and the emerging manager presentation posted with it: presentation. Source for: proposed size, per-fund cap, criteria and timing.
- Seward & Kissel LLP, 2025 Seed Transaction Deal Points Study (July 2026): release. Source for: institutional seeders dominate; seed capital split between hedge funds and private equity or credit.
A note on scope: this piece describes broad market practice as reported in third-party research and public program pages. It is general information, not investment, legal or tax advice, and it does not describe terms offered by any specific investor, including Whitespace. Inclusion of a program is not an endorsement, and Whitespace is not affiliated with any program listed.
More from Whitespace Research
- How Emerging Managers Raise Capital from Family Offices
- Seeding, GP Stakes, and First-Loss Capital: What Is the Difference?
- Do Emerging Managers Actually Outperform?
- How Seed Investors Actually Evaluate Emerging Managers
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