Don’t Panic: The Emerging Private Equity Manager’s Mini-Guide to the Fundraising Galaxy

by Andrés Ramos, Content Marketing Specialist – Nasdaq Private Fund Solutions

Commitments to the private markets gain momentum

According to data from Nasdaq eVestment, private markets funds saw $190.8 billion in commitments from public pension plans in 2021, a 18% YoY increase from 2020. What’s more, the number of unique plans reporting commitments grew by 17%. This serves as a clear signal that many of the allocators who took a “wait and see” approach in 2020 are back in the market making new allocations.

New initiatives will benefit emerging managers.

In addition to the increased commitment activity in the private markets, 2021 saw diversity, equity, and inclusion (DEI) initiatives become a much more prominent focus area for allocators. Both within their own operations and their portfolios, pension plans are intent on making DEI a priority in 2022. This is sure to benefit emerging managers in the coming year as many new funds are raised by individuals from demographics that have historically been under-represented in the industry.

Yet EMs face different challenges & headwinds

While these are positive signs for the industry, emerging managers are still facing challenges in fundraising from large institutional investors. From working to build rapport with an investor in a digital fundraising environment to pitching with a limited track record, Nasdaq Private Funds Solutions is acutely aware of these challenges.

In the face of these challenges, it’s important that emerging managers remember the phrase made famous by The Hitchhiker’s Guide to the Galaxy:

Don’t Panic.

The insights needed to navigate 2022

Launching, or closing out a capital raise in the coming year may seem daunting, but with the right insights, preparation, and planning you can maximize the likelihood of success for your firm.

Download the mini-guide to learn more.

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