Fund Flow The State of the Emerging Manager Market with McNally Capital’s Beth Rahn
Starting a fund is a challenging task on its own, but the pandemic added another layer of difficulty for emerging managers looking for limited partners. Having lost the ability to network and fundraise in person, many LPs played it safe and stayed with the funds they already had relationships with, leading to an upward trend in “re-ups.”
“LPs in 2020 and 2021 — you could kind of hear the anguish in their voice. They wanted so badly to be able to take the time to do diligence and vet and underwrite new managers. But […] there’s only so much capital to go around,” says Beth Rahn, Principal and Head of Family Capital at McNally Capital.
Thankfully for emerging managers, we’re starting to see a reversal of that trend in 2022 as LPs continue to show interest in the growing emerging manager market. The best thing emerging managers can do to seize that opportunity, Beth says, is to take their time building relationships and establishing a reputation.
“It's human nature to want to build a relationship with a manager before making a commitment,” says Beth.”So take the time to go out, meet investors before you actually need their capital.”
Tune in to this episode of Fund Flow as host Jon Finger talks with Beth about the future of the emerging manager market, diversity initiatives within private equity, and where emerging managers should improve.
💡 Featured Guest 💡
Name: Beth Rahn
What she does: Beth Rahn is a Principal and Head of Family Capital at McNally Capital. She has been with McNally since 2013 and leads the firm’s fundraising and investor relations efforts.
Organization: McNally Capital
Connect: LinkedIn
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