Some studies have found a correlation between early-stage funds and investment outperformance, and investors are looking for ways to tap into emerging manager talent. And while that talent remains raw and, by definition, somewhat untried, a number of institutional investors have launched emerging manager programs. Institutional Real Estate, Inc. collected perspectives from limited partners, multi-managers and emerging managers about some of the challenges that face the industry, as well as some of the benefits of working with new talent.

On the pension fund side, participants include Amy Cureton, portfolio manager, and Bob Sessa, director of real estate, of the $26.5 billion Employees Retirement System of Texas, as well as Thomas DiNapoli, comptroller of the state of New York, whose office oversees the $184.5 billion New York State Common Retirement Fund. Both NYSCRF and Texas ERS have programs targeting emerging manager firm