Allstate launches emerging manager program
Allstate Investments has launched its first emerging manager program — welcome news to the small investment firms that have been operating in an excruciatingly challenging fundraising environment.
At stake is $100 million that Allstate will be divvying out to up-and-coming managers.
Between 2010 and 2012, 74 percent of the 302 North American emerging managers were unable to raise any capital, and only 10 percent achieved a close. With 50 percent of available capital divided among the 10 largest firms, according to data from EY, Allstate’s new program, headed by Edgar Alvarado, will be able to provide a handful of small firms a welcome commitment.
Alvarado says he expects the $100 million to be divided among firms with strong investment track records that are raising their first, second or third institutional funds and have less than $500 million in assets under man