Jeff McDermott’s Post

As emerging fund managers, the temptation to chase every investor dollar is real—but more capital doesn’t always mean more success. Here's why focusing on the right capital and aligning it with your long-term strategy is key: 🔑 Aligning Capital with Strategy It’s not about gathering as much capital as possible, but about matching the right partners to your fund’s goals. Individual investors often have short-term horizons that might not align with your fund's long-term vision. 🔧 Building Efficient Systems Focus on robust, scalable systems for smooth operations, accountability, and effective communication. This builds trust with institutional partners and allows you to execute your thesis effectively. 👥 Building a Strong Team The team behind the fund is your differentiator. A cohesive, experienced team can execute complex strategies and weather market storms, delivering consistent results and long-term value. 💼 Don’t Beg for Capital—Earn It The right investors will come when your team is strong, your systems are efficient, and your thesis is solid. The market rewards consistent execution. Remember, it’s not about raising capital—it’s about managing it wisely to create lasting value. #FundManagement #EmergingManagers #InvestmentStrategy #TheCreditGenius

📊📈As megafunds and established managers dominate fundraising, should LPs be looking downstream for opportunities to invest in emerging managers? 📖🔍This piece investigates the performance of emerging and established managers to try to answer this age-old question Great work by my PitchBook colleagues Van Le, Zane Carmean, CFA, CAIA, Susan Hu and Kaidi Gao! #fundraising #LPs #fundmanagers #privateequity #PE #venturecapital #VC #pitchbook

The perennial debate between established vs emerging managers: which group delivers better returns to capital allocators (LPs)? I'm excited to share that PitchBook's latest analyst note, Establishing a Case for Emerging Managers: Exploring the effect of manager experience on private fund returns, has gone live. Established managers have the advantage of accrued experience managing capital across market cycles, which they leverage to demonstrate a track record of success to potential LPs. Emerging managers, lacking such a track record, must rely more heavily on forward-looking narratives. In this note, we compare the historical funds returns data of established managers with that of emerging managers while providing additional nuance on the impact that fund size has historically had on performance. We also include “ancillary” emerging fund offerings of established GPs as an alternative comparison. The analysis focuses on the US private market and spans across multiple asset classes, including PE (buyout), VC, real estate and private debt. A snapshot of venture: VC funds offer significant upside potential, with emerging managers having consistently outperformed since the late 1990s. However, returns from emerging VC managers are more volatile than their established peers. This research is a collaborative project with the Quantitative Research and Data Analysis team. A big shout out to Zane Carmean, Susan Hu and Van Le for co-writing the report. 🔗 Link to download the (free) report: https://lnkd.in/ggKYB2Yr

Emerging investment managers (those with 3 or fewer fund launches) often carve out niche strategies that allow them to exploit opportunities not readily available to larger, more established firms (4+ funds). These can include technology specialization in VC... According to PitchBook, "...data indicates that portfolios constructed of emerging managers could, in many cases, have outperformed those constructed solely of established firms—and with lower downside via diversification. In VC, specialist managers, regardless of firm experience, have tended to be the winners compared with generalists For LPs, the decision to invest in emerging versus established managers should not be a binary one. A strategic blend of both can potentially harness the strengths of each. Emerging managers can offer thematic exposures and greater alignment of interest, while established managers provide stability and experience." https://lnkd.in/e7JYQM45

💡Benchmarks in the investment industry serve as a standard for measuring the performance of securities, mutual funds, or investment managers. They provide a reference point for analyzing allocation, risk, and return of a portfolio, enabling investors to make informed decisions. Thanks Peter Walker for keeping us all informed!! Can’t wait for this!! Follow and get on the waitlist for this one! #benchmarks #fundraising #Capitalraise #founders #womenshealth #femhealth #medtech #wellness

The 𝙇𝙤𝙛𝙩𝙪𝙨 𝙋𝙚𝙖𝙠 𝙂𝙡𝙤𝙗𝙖𝙡 𝘿𝙞𝙨𝙧𝙪𝙥𝙩𝙞𝙤𝙣 𝙁𝙪𝙣𝙙 has been awarded a "4 IP" rating from Research IP, with a score of 4.18/5. What does Research IP says? "Research IP observes that the Fund possesses a number of differentiated factors that investors could find of interest and merit including: a distinctive focus on disruptive companies, a proprietary investment process, and an experienced team who specialise in this space. Both Alex Pollak (CIO) and Anshu Sharma (Portfolio Manager) possess qualifications and experience that are very relevant to managing a fund like Loftus Peak. Their expertise in disruptive business models, global disruption investment, portfolio management, and early thematic identification positions them well to achieve the Fund’s objectives." To access the full report, click the 𝗹𝗶𝗻𝗸 in the comment section. #qualitativeresearch #researchip #loftuspeak #investors #assetmanagement

I'm diving into the World of ETFs... As a business owner with a high risk tolerance, I'm embarking on a journey to diversify my portfolio through ETF investments. My goal? To generate significant returns for future real estate projects and create passive income streams. I'm particularly interested in: • Leveraged ETFs • High-growth sector ETFs • Emerging market opportunities • Innovative tech and clean energy sectors 🔍 Seeking to connect with: 1. Experienced ETF brokers serving North America, EU & Emerging Markets clients 2. Fellow investors active in the ETF space 3. Financial advisors specializing in high-risk, high-reward strategies Let's exchange ideas, share experiences, and explore the vast potential of ETF investing together! If you're in this space or know someone who is, I'd love to connect. #ETFInvesting #HighRiskHighReward #FinancialFreedom #InvestmentStrategy #GlobalMarkets #TechInvesting #CleanEnergyInvestment #WealthCreation

🚀 Excited to announce the release of our latest Analyst Note: Establishing a Case for Emerging Managers! 📊 In this research, we delve into the historical returns of emerging vs. established GPs across various sectors including buyout, VC, real estate, and private debt. Our aim? To equip LPs with valuable insights for portfolio construction in private markets and decision-making when considering external managers. 🔍 Key Highlights: Buyout Managers: Established managers demonstrate consistent performance, while emerging ones offer higher upside, particularly as established peers transition into megafunds. Emerging buyout managers have delivered better outcomes for LPs since the GFC. VC Funds: Emerging managers consistently outperform since the late 1990s, but with higher volatility compared to established peers. Real Estate Managers: Emerging players in niche areas show alpha potential post-GFC. Ancillary strategies at established firms exhibit attractive upside with moderated downside. Private Debt Managers: Emerging managers display higher upside potential but with increased downside risk, especially among bottom-decile performers. Favorable trends emerge for emerging debt funds, particularly in a higher-interest-rate environment. 📈 Our research integrates fund selection simulations, economic period analysis, and portfolio diversification strategies to offer actionable insights for LPs navigating the dynamic landscape of private markets. Check out the full note for in-depth analysis and implications! #PrivateMarkets #InvestmentInsights #EmergingManagers

Private market opportunities are booming! We spoke to experts at IMpower FundForum to see how investors are capitalising on prospects and trends that are likely to impact investment strategies. Watch their interviews in this article! Explore the private credit landscape with Amit Bahri, Goldman Sachs Asset Management and discover the importance of creativity and discipline and asset selection to ensure resilience and stability. Hear from Raman Rajagopal, Invesco EMEA on the impact of rising interest rates on private markets and the challenges they face. Get an overview of global private market trends, their evolution and Fusion, a data aggregation platform to help standardise data for better investment and reporting strategies with Montserrat Serra Janer, J.P. Morgan. Dive in here 👉 http://spr.ly/6042iQ0Ma #IMpower #FundForum #privatemarkets #investment #assetallocation

As we reflect on our journey from emerging managers to where we stand today at Alpha Capital, it's incredible to witness the progress we've made. Looking ahead into 2024, I'm particularly thrilled about reconnecting with former colleagues and individuals I've had the pleasure of meeting over the past year. With a newly formed partnership with a boutique investment bank with over 2B in AUM, our foundation is stronger than ever, enabling us to collaborate and share the innovative solutions we've meticulously crafted.   Our evolution goes beyond mere growth; it's about enhancing our capacity to serve those intrigued by the alternative asset space and seeking sophisticated opportunities. For anyone who has been part of our journey or is curious about what sets us apart, now is an ideal time to reengage in conversation. We're eager to showcase how we're making waves in the industry for high net worth and ultra-high net worth individuals, and how our expertise in specific asset classes over the past two decades can add value to your strategy.   Whether you've been following our progress or are simply seeking fresh perspectives in asset management, let's connect. Your insights, questions, and curiosity about the future of financial services are what propel us forward. Feel free to drop a comment, like, or reach out directly to reignite our dialogue. Together, let's redefine what's achievable in the alternative asset space. #familyoffice #finanace #alternativeinvestments #endowments #accreditedinvestors