- November 1, 2014: Vol. 7, Number 10

To read this full article you need to be subscribed to Institutional Investing in Infrastructure

Help wanted, experience required: Like a first-time job seeker, first-time fund managers have to prove their value with little or no track record

by Drew Campbell

Most people are familiar with the Catch-22 of a first-time job search: Hiring managers typically want to fill positions with experienced people, but the entry-level job seeker can’t get experience until they are hired for that first job. So what is a person with no employment history to do?

The predicament is not unlike what many first-time investment managers run into — institutional investors are reluctant to write a check to a team that has little or no track record of performance to judge, and a team cannot achieve a track record until getting a few institutional commitments.

One of the challenges these investment managers may face from more sophisticated investors is a robust, objective assessment that compares and contrasts them with other professional managers. The California Public Employees’ Retirement System, for example, recently adopted a systematic approach to objectively compare all of its prospective manager

Glossary, videos, podcasts, research in the Resource Center

Forgot your username or password?

Close your account?

Your account will be closed and all data will be permanently deleted and cannot be recovered. Are you sure?

We respect your privacy! Please give consent for processing data as described in our Privacy Policy