On paper, this would seem to be the perfect time to be an emerging real estate investment manager. Historical levels of capital are flowing into real estate, meaning there should be enough for everyone. Investors are looking for value-added and niche investments to boost returns, which are the types of strategies emerging managers thrive on. In reality, however, institutions are scaling back their commitments to new relationships. In 2006, tax-exempt investors expected to commit 50.1 percent of their capital to new managers; in 2007 that percentage fell to 27.8 percent. And in 2008, only 22.3 percent of capital is expected to go to new managers, according to Tax-Exempt Real Estate Investment Survey 2008 published by Institutional Real Estate, Inc. in conjunction with Kingsley Associates. This scaling back of additional manager relationships effectively leaves emerging managers out in the cold because, by definition, they have not had previous institutional experience.