In our Emerging Manager programme, we build a diversified portfolio of highly specialised managers targeting attractive net returns, accelerated deployment and a low Total Expense Ratio (TER) for our investors. Unigestion is well known as being one of the leading Emerging Manager investors having been active in this space since the 1990s.
We target the first or second fund of managers whose strategies are backed by supportive market conditions. We invest with teams that have a regional or sector expertise, a differentiated sourcing approach, a strong individual track record in creating value in portfolio companies and proven exit capabilities.
Our Emerging Manager Funds
- Access to leading specialists: We have a long history of backing the next generation of leading sector and strategy private equity specialists.
- Performance of a direct fund, driven by triple alpha: Outperformance is driven by the combination of small cap alpha specialist managers (outperformance of small and mid-market managers1), specialist alpha (outperformance of sector-focused funds) and selection alpha (our ability to select the best funds).
- Total expense ratio of a direct fund: We are able to reduce costs for our investors through cornerstone discounts, staggered carry schemes, short duration funds and the addition of co-investments.
- Downside protection: We reduce risk through diversification and selection.
1 Funds below USD 500m in size have historically outperformed funds larger than USD 500m. Source: Gottschalg, Gleisberg, Derungs, 2015
Unigestion has been investing in the Emerging Manager space for well over 20 years. In the 1990s, we were early investors in managers including Cinven, Permira, Carlyle Europe, and EQT. In the 2000s, we committed to the early funds of Waterland, Bowmark, and BlackFin, and in the 2010s, to HgCapital Mercury, Atlas Resources and Rubicon. More recently we have backed Emerging Managers such as Archimed or Tenzing. These groups have now grown into blue-chip large-cap managers or hard-to-access mid-market managers. Since 1996, we have committed to over 100 Emerging Managers globally. Over 70% of these funds achieved top or second quartile performance for their respective vintages. (Source: Unigestion, Preqin).