Should Emerging Managers Chase HNWs?

05/12/25 • 6 min

A recent article explores the growing trend of high-net-worth individuals (HNWs) becoming potential investors for emerging fund managers. Fundraising experts suggest that while lower mid-market firms currently rely on traditional institutional investors and placement agents, HNW capital is becoming increasingly accessible.

This expansion is facilitated by new alternative retail structures and innovative fund structures that address liquidity concerns. Industry professionals anticipate this trend to continue, offering a stable, non-traditional source of capital for smaller and newer private equity firms.

Check out that full article here: https://www.themiddlemarket.com/news-analysis/should-emerging-managers-chase-hnws

DISCLAIMER: The BizNexus Roundup podcast features AI hosts whose analysis is based entirely on pattern recognition and reports created by actual human experts. While our hosts can process vast amounts of data, they've never actually closed a deal or sat in a boardroom.

Our discussions draw from publicly available sources and expert insights, but we strongly encourage listeners to consult the original documents and reports referenced in each episode for the complete context and analysis. The AI hosts' market predictions and deal assessments, while data-driven, are no substitute for professional human judgment and due diligence.
For actual M&A advice, please consult qualified human experts and always go to the source materials to get the full story.

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Intro Music Artist: DJ Freedem | Track: Pretty Boy

Check out that full article here: https://www.themiddlemarket.com/news-analysis/should-emerging-managers-chase-hnws

Learn More About BizNexus

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Intro Music Artist: DJ Freedem | Track: Pretty Boy

Previous Episode

What Does It Take to Raise a First-Time Fund? Expert perspectives.

Launching a first-time private equity fund presents ongoing challenges, yet increasing capital pools focused on emerging managers offer opportunities for those with strong track records. Investors prioritize demonstrable prior deal success and cohesive teams, often favoring managers specializing in the middle and lower-middle markets.

The lower middle-market is particularly attractive due to abundant deal flow and the potential for significant growth. While the fundraising environment is complex, anticipated increased liquidity and a focus on sectors like technology and healthcare suggest a favorable outlook for well-positioned new funds, especially towards the end of 2025.

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Check out his full article here: https://www.themiddlemarket.com/feature/what-does-it-take-to-raise-a-first-time-fund

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Intro Music Artist: DJ Freedem | Track: Pretty Boy

Next Episode

"Technology" and Lower Middle Market purchase prices

Brent Mathews' article from February 2025 discusses the impact of technology, particularly AI and readily available coding resources, on acquisition prices in the lower middle market. Mathews, drawing on fifteen years of experience in acquisition financing, observes that buyers are increasingly projecting significant revenue and EBITDA growth based on planned technology implementations. He questions whether buyers with technological expertise will inflate the prices of companies with outdated systems and lower margins.

The article also considers how traditional "value" investors might adapt to this changing landscape. Mathews reflects on the historical challenges and unpredictability of implementing technological changes in acquired businesses.

Check out that full research here: https://www.linkedin.com/pulse/technology-lower-middle-market-purchase-prices-brent-mathews-y8wue/?trackingId=0%2BiLnzCoTdeofUT4qhflKw%3D%3D

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Show Credits

Intro Music Artist: DJ Freedem | Track: Pretty Boy