Leading LPs vote MITIMco the top investor for up-and-coming fund managers, and also provide special insights into how to raise capital
Clade, the global fintech platform reinventing how investors and fund managers collaborate, announced today that MITIMco, the $25 billion management company of the MIT endowment, was named as having the ‘Best Emerging Manager Program’ in a survey of their institutional clients.
On the Clade platform, there are more than 400 leading endowments, foundations, pensions, and sovereign wealth funds, so the honor comes directly from MITIMco’s in-the-know, friendly competitors. MITIMco won based on its expansive track record for backing new fund managers early in their life cycle, providing intellectual capital to help managers scale, and identifying lucrative investments trends early.
Runners-up included CalPERS, DUMAC, MassPRIM, Teachers Retirement System of Texas, and New York State Retirement.
“Joel Cohen and the whole MITIMco team are a remarkable example of how intellectual horsepower, calculated risk taking, and heterodox manager selection can come together for a winning trifecta,” said Jonathan Lipton, CEO of Clade. “At Clade, we’re rooting for the underdog, and want emerging managers to punch above their weight. Our survey helps them navigate the treacherous waters of institutional fundraising.”
Clade’s investor survey was designed to shed light on the daily behaviors of these elusive LPs, better understand their inner workings, and help hedge funds and private equity managers scale AUM. The results provide a hands-on guide of which institutional investors these emerging managers should pitch, and how to efficiently do it. Survey questions ranged from best-in-class fundraising tactics, diversity and equity (DEI) requirements, and when not to take “no” for an answer. The survey can be found here: https://info.clade.co/resources/
The following were some of the key takeaways:
• 61.7% of all institutional LPs will only invest in an emerging manager if their AUM is +$100 million;
• Well over half of all new investment allocations will go to fund managers with DEI characteristics;
• More than 50% of LPs require at least 4 meetings with a GP before making an investment;
• Most often, LPs “ghost” GPs simply because they can’t get through their email inbox.
“Institutional allocators often seek alpha by investing with niche, opportunistic and non-traditional managers including emerging and/or diverse GPs; however properly sourcing and evaluating these firms and strategies requires bandwidth, expertise and often an entirely different set of tools than what is typically available. It’s well worth the effort though when these managers produce the differentiated returns sought. It is also beneficial to the entire industry for allocators to discover and support new, different and emerging talent”, said Tony Waskiewicz, president and CIO of Investment Office Resources in St. Louis, a firm that provides a wide variety of specialty resourcing services and domain expertise for institutional allocators.
Respondents to the survey included 50% endowments and foundations, 20% single or multi-family offices, 15% public pension funds, and the rest a range of institutions including healthcare, religious pension funds, etc. 44% of LPs had AUM of $1-5 billion, and 6% of LPs’ AUM exceeded $100 billion. The rest ranged across the scale, but no LP had less than $500 million in AUM.
About Clade
Clade is the leading global Fintech company powering two-sided engagement between investors and fundraisers. Clade’s platform helps investors track, diligence, and discover investment opportunities, and provides fundraisers with asynchronous marketing tools to reach, engage, and cultivate LPs. The platform links multiple organizations in the market thereby driving direct, networked connectivity and collaboration. Clade’s solutions enable capital allocators and investors to streamline their operations through simplified workflows thereby reducing costs and saving invaluable time. By minimizing friction and eliminating gatekeepers, Clade brings innovation to an industry that has changed very little over the last 50 years. With over 400 institutional allocators (representing +$3.6 trillion) using Clade’s work tools, the company aims to become the de facto place where the global investment industry interacts and transacts.
To request access to the survey, visit:
Survey: https://info.clade.co/resources/
For more information on Clade, visit:
Website: https://clade.co/
