Limited partners are showing renewed interest in emerging managers as they gain confidence in the asset class and look to diversify portfolios, McGuireWoods Charlotte partner Rick Starling told Mergers & Acquisitions in an Aug. 8, 2024, story.
Starling, co-leader of McGuireWoods’ fund formation group, said he expects emerging managers will continue to see fundraising figures from limited partners rise in coming years. Many emerging managers invest in the lower middle market, where smaller initial investments in less competitive environments create the potential for bigger returns.
“Emerging managers are becoming a recognized asset class,” Starling told Mergers & Acquisitions. “There’s money to be made with these managers because of the kinds of investments they’re making.”
McGuireWoods is the preeminent law firm for emerging private investment fund managers. The firm’s signature event is the Emerging Manager Conference, which drew about 1,000 emerging manager and limited partner attendees this year.
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