Emerging managers often write off the public pension channel before they ever pick up the phone. The assumptions are understandable: you need a three-year track record, $500M in AUM, a consultant relationship, and a firm that checks a specific diversity box. The problem? Most of those assumptions are wrong.
In Episode 43 of the Emerging Manager Growth Show, Gui Costin and the Dakota team break down exactly how public pensions work, what Emerging Manager Programs (EMPs) actually look for, and how managers can engage this channel effectively — even early in their fundraising journey.
The 4 Myths Holding Emerging Managers Back from Public Pensions
Myth #1: You Need a Three-Year Track Record
Public pensions define “emerging” differently than you might think. Many programs are specifically designed to evaluate managers before they’ve built a long institutional track record. The whole point of an EMP is to give earlier-stage managers access to capital. Don’t let the assumption of a track record requirement stop you from doing the work.
Myth #2: You Need $500M+ in AUM
AUM minimums vary significantly from institution to institution. Some pensions set floors; many don’t. Programs like those at CalPERS, Texas Teachers, Maryland State Retirement, and LA Fire & Police all define the AUM threshold differently. The only way to know is to research each program individually — and Dakota Marketplace is built exactly for that kind of targeted intelligence.
Myth #3: You Have to Go Through a Consultant
Consultants are influential in the public pension world, but they are not the only door in. Many EMPs have dedicated staff and a direct submission or outreach process. Waiting for a consultant relationship to materialize before engaging pensions means you’re leaving years of pipeline-building on the table.
Myth #4: You Have to Be a Diverse or Minority-Owned Firm
Diverse and women & minority-owned EMPs are a distinct and valuable segment — and if you qualify, you should absolutely engage them. But many EMP programs are not diversity specific. They exist to support emerging managers broadly, defined by vintage, track record, and AUM — not ownership structure. Know which programs apply to you.
How Pensions Actually Define “Emerging”
The definition varies across three primary dimensions:
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Vintage — How long the firm has been in existence
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Track Record — How many years of audited performance history the manager has
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AUM — The total assets under management threshold
Each institution sets its own criteria. CalPERS, Texas Teachers, Maryland State Retirement, and LA Fire & Police are all examples of pensions with active EMP frameworks — but each has a different definition of who qualifies. The research step is non-negotiable. Understanding exactly where you fit before you reach out is what separates disciplined fundraising from wasted effort.
Market Update: Where Dakota Is Seeing Wins
The current environment is showing real activity in two areas:
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Long-only equity — There is renewed appetite at the allocator level, particularly for managers with a differentiated process and a clear story.
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Alternatives — Private credit, private equity, and specialty strategies continue to attract interest from pensions looking to hit return targets in a challenging rate environment.
Managers with something truly differentiated — a unique sourcing edge, a non-consensus thesis, an underserved geography — are getting meetings. The fundamentals of great outreach still apply, but the story has to be sharp.
Fundraising Best Ideas: The Operating System That Works
No matter the channel, the same core practices drive results.
City Scheduling Plan your meetings at least six weeks in advance. Pick your target cities, identify the relevant pension contacts and EMP staff, and book five meetings a day. Concentrated, disciplined market coverage beats scattered outreach every time.
Cold Email That Works Keep it simple. One sentence on who you are, one sentence on your strategy, and a specific ask: “Can you meet on June 10 at 2 PM?” Open-ended asks get ignored. Specific asks get answered.
The Quarterly Webinar Your quarterly webinar is your most cost-effective brand-building tool. Performance update, market commentary, and the faces behind the fund — done consistently, it keeps you top of mind even when there’s no active allocation process underway.
Use AI to Handle Your Call Notes One of the highest-leverage things you can do after a meeting is get your notes into your CRM quickly and accurately. Using Claude to transcribe and structure call notes takes the admin burden completely off your plate — so you can spend your time booking the next meeting instead of writing up the last one.
The Bottom Line
Public pensions are not out of reach for emerging managers. The managers who engage this channel systematically — who understand how each institution defines “emerging,” who show up consistently in EMPs, who do the disciplined outreach work — are the ones who get into the consideration set years before a formal allocation process begins.
The juice is worth the squeeze. But you have to start squeezing.
Want to explore public pension contacts and Emerging Manager Programs in Dakota Marketplace? Book a demo.
