In a recent fireside chat hosted by Giovanni Amodeo, Ami Samuels and Michelle Jacobi from Gatewood Capital shared their insights on identifying the best emerging market managers. The discussion covered several key topics, providing valuable perspectives for both emerging managers and investors.

Key Topics Discussed:

• Background and Roles:
  • Michelle Jacobi: Managing Director at Gatewood Capital, responsible for business development, fundraising, and marketing.
    • Ami Samuels: Early member of Gatewood Capital, focused on sourcing and partnering with emerging managers.
• Gatewood Capital’s Approach:
  • Sourcing Emerging Managers: Strategies for identifying and partnering with promising emerging managers.
  • Partnership Model: Emphasis on long-term partnerships, providing support beyond initial investments.
• Value of Anchor Investors:
  • Building Momentum: Importance of anchor investors in gaining fundraising momentum and credibility.
  • Infrastructure Support: Role of anchor investors in helping managers build firm infrastructure and back-office functions.
• Due Diligence Process:
  • Intensive Evaluation: Necessity of thorough due diligence for each emerging manager, considering unique aspects of each opportunity.
  • Long-Term Relationships: Commitment to detailed evaluation to ensure successful long-term partnerships.
• Challenges and Opportunities:
  • First Close Significance: Impact of achieving a first close on attracting further investments.
  • Institutional Investor Expectations: Navigating the expectations and requirements of institutional investors.
• Future Outlook:
  • Evolving Processes: Discussion on whether the due diligence process will become less intensive over time.
  • Compensation and Economics: Addressing the economics of early-stage investments and the value provided to future LPs.
• Conclusion:
  • The fireside chat provided a comprehensive overview of Gatewood Capital’s strategies and insights into the emerging market landscape. Ami Samuels and Michelle Jacobi highlighted the importance of thorough due diligence, the role of anchor investors, and the value of long-term partnerships in building successful investment firms.

Key timestamps:

00:14 Introduction to the Fireside Chat
00:48 Guest Introductions and Backgrounds
01:38 Understanding Gatewood Capital’s Focus
03:44 Current Market Conditions for Emerging Managers
08:22 Assessing Track Records of Emerging Managers
11:17 Differentiation Strategies for Emerging Managers
14:01 Motivation vs. Ego in Fundraising
16:34 The Role of Branding and Positioning
19:17 Building Momentum with Initial Investments
21:28 The Role of Due Diligence in Investment Decisions
22:43 Compensation for Early Work in Partnerships
24:00 Closing Remarks and Insights