The term “emerging manager” can be misleading, often suggesting a manager that’s green, just starting out as an investor and relying on their first limited partners to take a risk on them while they build a track record. In reality, many emerging managers are quite the opposite. They are seasoned entrepreneurs and professional investors who’ve launched their own fund to capitalize on their unique sector ascendancy and have a long queue of investors who are justifiably eager to back them.
Capitol Meridian Partners (CMP) is one such fund. The team, led by industry veterans Brooke Coburn and Adam Palmer, recently announced the close of their first fund, raising $900M in capital, both exceeding the fundraising target and hitting the hard cap.
We participated in Capital Meridian Partners Fund I alongside more than 30 institutional investors, including endowments, foundations, pension funds, and others. We’d like to take a moment to congratulate the team at CMP and reflect on not only why we invested but also why we believe they’ve seen such great success in a challenging environment.
- A proven team with a compelling strategy: Palmer and Coburn have a 27-year track record in private equity investing through their tenure at The Carlyle Group. Their targeted focus on the government and defense market makes them specialist investors with the know-how to navigate the complex regulatory landscape.
- A deep network and long-standing presence in the DC market: The team is well-connected with government leaders and industry executives, enabling founders to access subject matter experts and drive additional value through growth.
- A founder-friendly approach: CMP seeks to invest in companies and founders, providing critical support functions so that management teams are able to build their businesses and drive value creation.
While many investors may be hesitant to invest in a first-time fund manager, these emerging managers are often the most successful at creating alpha for their LPs. It’s important to look beyond their emerging status and consider the team’s background, strategy, and philosophy. Congratulations again to the CMP team; we are excited to see what’s next.
-Logan Henderson, CEO
Featured Investments
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A Final Thought
Chicago-based private markets investment firm Adams Street Partners recently released their 2024 Private Markets Outlook. A $58 billion asset manager, they surveyed pension funds, institutional accounts, and portfolio managers to determine their take on the year ahead. A few callouts:
- 39% of investors say rising rates and inflation are the biggest investment
challenges in private markets. - However, 46% strongly agree that rates have peaked and that rates will
be lower by the end of 2024. - 67% of survey respondents expect to increase their private market deployments in 2024.
- 88% believe private markets will continue outperforming their public market equivalents over the long term.
While respondents were primarily large institutional investors, we believe individuals and advisors should be able to build portfolios that capitalize on these opportunities. Our investment team provides the curated selection of managers most likely to generate outsized returns and maintain resiliency across market cycles.
– The Team at Gridline