LPs show growing preference for new opportunities
While the pandemic has introduced its fair share of hardships, it’s also offered a chance for emerging managers to make a strong option for limited partners. More than 70 percent of LPs recently surveyed said they had either the same or greater levels of interest in investing with emerging managers, like VIKASA Capital Advisors, than they had a year ago.
Why the change in attitude? Emerging managers have proven themselves to be nimbler and more responsive to not only market conditions, but social issues, too. Global travel restrictions have taken away the emphasis of face-to-face meetings and allowed virtual fundraising to take center stage. As the effects of the pandemic wane, LPs are relaxing their rules and investing in managers without ever stepping in the same room simultaneously. Emerging managers have proven to be more adaptive and flexible in a myriad of ways, including adapting to digital communications and the new norm of virtual fundraising.
Despite public perception of the pandemic-affected financial markets, 2020 remained a prosperous year for mega-funds. But with so much capital to invest, LPs seek the innovation and new ideas presented by emerging managers, which are often overlooked by larger, established fund managers.
Learn more about VIKASA Capital Advisors and our investment strategy at VIKASAcapital.com.