Emerging Managers and Independent Sponsors in Private Equity: An Increasing Area of Focus for Certain Limited Partners?

Emerging managers present increased due diligence risks for institutional investors as they usually have a limited history of working together, but those that are successful can outperform. Though attention in the financial press tends to focus on large, established, name-brand fund managers, certain sophisticated institutional investors have retained a strong interest in the sector – and interest in an allied sector, independent sponsors who invest on a deal-by-deal basis without the backing of a blind-pool fund – has been steadily growing.