Do NOT start an emerging manager under any circumstances. Do not work for a pre-launch manager without a nine figure seed investor, even if they offer you “equity”, even if they’re super smart, even if you’re getting a base pay raise from your last job. Just don’t do it.
https://twitter.com/SuperMugatu/status/1376571643330445317
Being an emerging manager is like doing a PhD because you want to be a tenure track professor. It is presented to you as the natural continuation of your path thus far, you have probably interacted only with success stories, and you absolutely, positively, Should. Not. Do. it.
Here is a checklist of conditions to be a EM:
1. Mom/Dad are worth over $10mm
2. You worked for GS/MS/etc
3. You worked for Citadel/etc
4. You personally know 5+ allocators willing to drop $25m+
5. You actually know how to manage a portfolio
That gets you to ~25% success chance
1. Mom/Dad are worth over $10mm
2. You worked for GS/MS/etc
3. You worked for Citadel/etc
4. You personally know 5+ allocators willing to drop $25m+
5. You actually know how to manage a portfolio
That gets you to ~25% success chance
You can maybe push it a little further: you could have gone to an Ivy, you could be single or at least childless, you could have enough money to hire a few people to help run the thing. Maybe you get to 33%. What will not help: being a good analyst, having a good track record.
To be slightly more vicious: 99% of people who start a hedge fund will fail, but in fairness probably 90% of them absolutely deserve it. Even among the 10% with real talent and a future, 90% of them will still fail. Just brutal odds, do not try it if you can just get a paycheck.
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