How Emerging Managers Can Succeed with Public Pension Funds

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 a different institutional channel 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.

In December, the Emerging Manager Growth Show focused on the Public Pension Fund Channel, with Gui Costin and Andrew O'Shea sharing their insights on its significance for emerging managers. They discussed the evolving landscape of public pension fund allocations, busted common myths, and offered tactical advice to help managers position themselves effectively in this high-potential channel. They also highlighted strategies for maintaining consistency, leveraging technology, and capitalizing on emerging trends.

In this article, we will cover the key takeaways from December’s Emerging Manager Growth Show. By the end of this, you’ll have actionable tips to help you navigate the public pension fund space and grow your business.

Key Takeaways

1. Consistency: The Cornerstone of Success

For emerging managers, staying top-of-mind with allocators is critical. Gui and Andrew emphasized the importance of persistence paired with patience. Fundraising success often hinges on a manager's ability to consistently deliver updates - on performance, AUM, or organizational changes - even when immediate opportunities seem distant.

Practical tips for consistency:

  • Regular updates keep your firm on the radar, ensuring you're in the conversation when allocations open up.
  • Utilize CRM tools to track engagements, measure progress, and maintain systematic outreach.

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2. Busting Myths About Public Pension Funds

Emerging managers often avoid public pension funds due to misconceptions about entry barriers. Gui and Andrew debunked some common myths:

  • The Three-Year Track Record Requirement: While some pensions prefer established managers, many are open to meeting earlier-stage firms to build relationships and assess their capacity.
  • Consultants as Gatekeepers: Having a consultant doesn’t preclude direct engagement. In fact, pensions often welcome direct discussions that can lead to introductions with consultants.
  • Internal-Only Allocations: While many pensions manage assets internally, most also rely heavily on external managers, particularly for specialized strategies.

3. Targeting Smaller, Specialized Allocations

Emerging managers stand to benefit from a growing trend among public pension funds to allocate to smaller, more specialized funds. Andrew noted that pensions increasingly recognize that “bigger isn’t always better,” creating new opportunities for boutique managers with unique investment strategies.

4. Using Technology for Leverage

Gui highlighted the role of CRM systems as a game-changer for emerging managers. By tracking meetings, follow-ups, and opportunities, managers can streamline their efforts and focus on actionable steps.

Maximize CRM benefits by:

  • Documenting every interaction with allocators.
  • Creating and reviewing opportunity reports daily to keep the pipeline moving.

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5. Persistence Pays Off

Persistence was a recurring theme in the episode. Gui and Andrew shared actionable advice for emerging managers:

  • Define Your TAM (Total Addressable Market): Focus on a manageable subset of allocators to optimize outreach efforts.
  • City Scheduling: Plan meetings in advance, targeting key cities for concentrated outreach efforts.
  • Ask Tough Questions During Meetings: Instead of generic follow-ups, use meetings to gather definitive insights into allocators' intentions, timelines, and needs.

6. Long-Term Relationships Matter

Allocating to public pension funds often requires a long sales cycle. Gui and Andrew stressed the importance of relationship-building and patience, as these opportunities may take years to materialize. Managers must remain proactive while setting realistic expectations for timelines and outcomes.

Your Path to Public Pension Fund Success

Episode 26 of the Emerging Manager Growth Show provided a roadmap for engaging with public pension funds. By dispelling myths, embracing consistency, and leveraging technology, emerging managers can position themselves effectively in this channel. The strategies shared by Gui and Andrew highlight the importance of persistence, preparation, and relationship-building in achieving long-term success.

Whether you’re just starting to explore public pension funds or are refining your approach, the lessons from this episode are clear: Focus on the fundamentals, invest in consistent outreach, and always be prepared for the next opportunity.

To explore channels and start city scheduling, book a demo of Dakota Marketplace!

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Written By: Morgan Holycross, Marketing Manager

Morgan Holycross is a Marketing Manager at Dakota.

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