Alternative asset manager Taproot Capital, which provides emerging managers with operational capital and strategic guidance, announced Tuesday the launch of the Taproot Talent Tree Executive Network.
The network aims to provide guidance on strategic and operational priorities for emerging private equity managers, a statement from Taproot said. This includes finance and fund administration, deal sourcing and administration, legal and compliance, market analysis, talent management, limited partner perspectives and other operational tasks.
“Building a successful private equity firm involves more than a sound investment strategy and access to capital,” said Eric Zoller, CEO and co-founder of Taproot, in a statement. “We see tremendous value in bringing together professionals with different backgrounds and perspectives to help our partners navigate the opportunities and challenges of growing their firms.”
Taproot Capital specializes in seeding first-time managers and working with emerging and growing private equity firms. The firm also assists new and emerging managers with operational solutions, including fundraising and investor relations support.
Interest in Emerging Managers Rises
Research from the Alternative Investment Management Association, in partnership with financial services company Marex, found that emerging managers are institutionalizing faster to meet the needs of limited partners, while LPs are increasingly backing newer funds.
The AIMA survey, primarily consisting of emerging hedge fund managers, found that the length of time of the track record for a general partners’ flagship fund before an LP considers investment was an average of 1.27 years, down from 1.52 years in 2024, with nearly 60% of LPs willing to consider a new fund with less than one year of history.
The study also found the average minimum fund size investors required before considering an allocation has fallen to $94 million from $151 million in 2022.
A report from Gen II Fund Services found that the emerging manager market has become increasingly bifurcated, with those that can institutionalize their operations, such as treating fund administration as a value driver, set to be better positioned amongst peers.
Tags: Emerging Managers