The State of the Emerging Manager Market with McNally Capital’s Beth Rahn

Starting a fund is a challenging task on its own, but the pandemic added another layer of difficulty for emerging managers looking for limited partners. Having lost the ability to network and fundraise in person, many LPs played it safe and stayed with the funds they already had relationships with, leading to an upward trend in “re-ups.”

“LPs in 2020 and 2021 — you could kind of hear the anguish in their voice. They wanted so badly to be able to take the time to do diligence and vet and underwrite new managers. But […] there’s only so much capital to go around,” says Beth Rahn, Principal and Head of Family Capital at McNally Capital.

Thankfully for emerging managers, we’re starting to see a reversal of that trend in 2022 as LPs continue to show interest in the growing emerging manager market. The best thing emerging managers can do to seize that opportunity, Beth says, is to take their time building relationships and establishing a reputation.

“It's human nature to want to build a relationship with a manager before making a commitment,” says Beth.”So take the time to go out, meet investors before you actually need their capital.”

Tune in to this episode of Fund Flow as host Jon Finger talks with Beth about the future of the emerging manager market, diversity initiatives within private equity, and where emerging managers should improve.  

💡 Featured Guest 💡

Name: Beth Rahn

What she does: Beth Rahn is a Principal and Head of Family Capital at McNally Capital. She has been with McNally since 2013 and leads the firm’s fundraising and investor relations efforts. 

Organization: McNally Capital

Connect: LinkedIn

Contact

Connect with us on Facebook, Twitter, Instagram, YouTube.

Subscribe to Fund Flow in your preferred podcast app so that you never miss an episode. 

This podcast was recorded and is being made available by McGuireWoods for informational purposes only. By accessing this podcast, you acknowledge that McGuireWoods makes no warranty, guarantee, or representation as to the accuracy or sufficiency of the information featured in the podcast. The views, information, or opinions expressed during this podcast series are solely those of the individuals involved and do not necessarily reflect those of McGuireWoods. This podcast should not be used as a substitute for competent legal advice from a licensed professional attorney in your state and should not be construed as an offer to make or consider any investment or course of action.