Emerging Managers Bearing the Brunt of the PE Funding Slowdown

Marc Patterson
2 min readJun 5

The Big get Bigger

In this competitive PE funding environment, larger well-known funds continue to win investor capital away from emerging managers. The % share of new investor capital going to Sponsors with 3 funds or less dropped by almost half over the last year.

As detailed in The Wall Street Journal article: “So-called emerging managers, or those that have raised three or fewer funds, account for about 17% of the total money collected by the industry since the beginning of last year. Such relatively new firms gathered around 31% of the total capital raised from 2008 through 2021.”

You Need Every Competitive Advantage You Can Get

In this challenging environment, emerging managers need every competitive advantage they can get. Higher interest rates will make multiple expansion unlikely. Value creation at the portfolio company level will be more important than ever.

Larger buyout shops have a deep bench of operating partners that help drive value creation. They are leveraging this expertise to grab a larger share of investor capital.

Do you have those resources at your disposal? If not, we can help.

E78 Partners can level the playing field against the larger buyout shops. Our expertise, industry knowledge, and proven track record will help you to maximize investor returns and drive portfolio company success.

We understand your needs. We are PE-backed as well.

This is exactly the type of help you need in this environment to grow your investor capital base. Let us help.

© Copyright June 2023. Marc Patterson. All Rights Reserved

Marc Patterson

Managing Director at E78 Partners — Driving value creation for Private Equity, Venture Capital, and Growth-stage companies. Email: mpatterson@E78Partners.com..

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