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Are Others Facing Challenges with Small Funds and Investment Limitations for Emerging Fund Managers?

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May 03, 2023
Is anyone else experiencing this issue? I have spoken to at least 7 funds of funds specifically dedicated to emerging fund managers (a perfect fit) and the following things keep coming up ) • A $5m fund is too small • We can't be more than 10% of your fund and only issue $2m+ dollar checks • Come back to us for the next fund or make this one larger With the above said I am tempted to make my fund at least $10M but we have been advised to stay at 10% of what we can raise from friends and family.
1 answer
Accepted Answer
May 03, 2023
Well - you’re not an emerging manger. You’re a new manager. And, sadly, many of these FoFs don’t fund new managers very often. I think you need to focus on what you can realistically close and deploy. You can always over-subscribe and you can mention that should some FoF push back on the fund-size (which is really just a NO in disguise). Say: Great - we’re open to oversubscribing and our model allows for that. And, we’re open to it if we bringing the right partner onboard.

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