December 04, 2024
Emerging managers often face the challenge of growing their businesses on limited budgets, and Dakota’s Emerging Manager Growth Show is designed specifically to help. Hosted by Dakota’s CEO and Founder, Gui Costin, the show offers practical advice on how managers can do more with less. Each episode focuses on different institutional channels such as RIAs, pension funds, family offices, banks and broker-dealers or consultants, and provides actionable tips on scaling, best practices, and navigating industry trends. The goal is to equip emerging managers with the tools needed to thrive in a competitive landscape.
This past November, the Emerging Manager Growth Show focused on the Consultant Channel with Gui Costin and Tim Dolan sharing their insights on its significance for emerging managers. While emphasizing the long-term potential of the consultant channel, they discussed the importance of systematically targeting emerging manager consultants, large global consultants, and OCIO groups. They highlighted strategies for successful outreach, including the critical role of consistency, building tailored approaches for consultants, and integrating these efforts alongside primary focus areas like RIAs to maximize fundraising success.
In this article, we will cover the key takeaways from November’s Emerging Manager Growth Show. By the end of this, you’ll have actionable tips to help you navigate the Consultant space and grow your business.
For emerging managers, cold outreach remains essential. Gui and Tim emphasize that while it’s tough, there’s no alternative to systematically reaching out to potential investors. Effective cold outreach involves:
City scheduling: Plan meetings in key cities at least six weeks in advance.
Clear email communication: Write concise, compelling emails with a specific call to action (e.g., “Can you meet on December 6 at 11 AM?”). Open-ended requests, like "Are you available in the next few weeks?" are far less effective.
Volume with quality: 15-25 outreach emails per day focused on relevant accounts.
Consultants are a must-hit channel for emerging managers, but their timelines are long, and allocations tend to be smaller. There are three main consultant types to target:
Emerging Manager Consultants: Examples include Xponance, Attucks, Legato, and Stable. These consultants often allocate to early-stage managers but may negotiate fees heavily.
Large National and Global Consultants: While these require longer-term relationship-building, they can provide significant opportunities.
OCIO Groups (Outsourced Chief Investment Officers): This growing segment bridges the gap between consultants and direct allocations.
Gui and Tim stress covering consultants systematically while maintaining a primary focus on RIAs (Registered Investment Advisors) for short-term success.
Quarterly webinars are a high-leverage tool for brand building and investor engagement. These events allow managers to:
Provide insights: Share performance updates, highlight standout investments, and discuss investment philosophy.
Build trust: Position themselves as thought leaders and trusted partners.
Streamline communication: Reduce the need for one-on-one calls by addressing common questions for multiple stakeholders.
A webinar should be recorded, transcribed, and repurposed as a follow-up tool in emails and meetings.
Emerging managers like Spruce Capital, a real estate debt strategy, are achieving notable milestones. In this case, the firm’s oversubscribed first close reached half of its $750 million target. The key takeaway? Money is in motion, and consistent cold outreach, combined with unique investment ideas, can lead to significant breakthroughs.
The highlight of the episode was an insightful interview with Screendoor partners Lisa Cawley and Jamie Rhode. Screendoor’s unique approach focuses on:
Backing diverse managers with unconventional backgrounds: They emphasize non-consensus qualities, such as unique career paths and personal journeys, which often lead to outsized returns.
Leveraging GP advisors: Experienced General Partners provide strategic guidance to emerging managers, helping them navigate challenges and scale their firms effectively.
Making the process accessible: Screendoor actively seeks out managers through LP networks, referrals, and an open online submission process.
Emerging managers seeking seed capital and guidance should consider engaging with Screendoor, which plans to deploy $200–$250 million in the coming year.
The episode concluded with Gui and Tim reiterating the importance of staying active in the market. Success in fundraising requires constant effort—booking meetings, leveraging tools like Dakota Marketplace, and executing strategies such as webinars and targeted outreach. As Gui put it, "The juice is worth the squeeze."
Episode 25 of The Emerging Manager Growth Show offers a roadmap for emerging managers navigating the complex world of fundraising. Whether it’s leveraging consultants, mastering cold outreach, or building your brand through webinars, the strategies shared by Gui, Tim, and Screendoor provide actionable steps for growth. As always, success lies in persistence, structure, and a willingness to embrace new opportunities.
To explore channels and start city scheduling, book a demo of Dakota Marketplace!
Morgan Holycross is a Marketing Manager at Dakota.
