Emerging manager performance
A new PitchBook analyst note, Beyond Fund I, dives into several emerging manager topics. A few surprises stood out. The chart above, for example, shows fairly static performance between a manager’s first fund and subsequent ones. Debut funds do, though, see the most performance variation compared to later funds, at least on an IRR basis. Debut funds perform better on a TVPI basis, however, suggesting that many first-time managers underutilize capital call facilities and dividend recaps, at least compared to more seasoned managers. The numbers suggest a small sophomore slump, with Fund IIs slightly underperforming debut funds.