This year, we sponsored the virtual HFM European Emerging Managers Summit 2021. The agenda was filled with interesting and insightful industry-specific content. Ed Parkes, Senior Manager, and Joshua Whittaker, Assistant Manager, provide commentary on the event below.

A number of industry leaders addressed topics including:

• The impact of Brexit on smaller managers
• From the ground up: building a sustainable start up fund
• Re-imaging the future of emerging fund management
• The emerging manager’s guide to budgeting
• Optimising your ODD process as a smaller, remote manager
• ESG: navigating new rules and introducing new procedures
• Show me the money: which sources should you seek capital from?
• The latest in the science of decision-making

There are various challenges and opportunities facing emerging fund managers in a post-COVID-19 and post-Brexit world. The importance of choosing the right service providers was stressed by a number of speakers throughout the day; from lawyers and accountants to prime brokers and compliance officers, these experts will help ensure the success of your business during these times and should be chosen with the same level of care as if they were your own employees.

Some thought that ESG priorities would diminish at the height of the pandemic, however it is apparent that this has not occurred and, if anything, these considerations now rank higher on investors’ priority lists than they did prior to the pandemic. Speakers noted the importance of firms developing an ESG philosophy and being able to discuss this at length early in the relationship with potential investors.

Bernadette King, Partner and Co-Head of Financial Services, hosted a roundtable discussion on the importance of budgeting for emerging managers. This highlighted the significance of effective budgetary and monitoring procedures, and how to be financially regulatory compliant prior to the launch of a fund. The discussion also considered how procedures and expenditure had changed due to WFH, and in which areas you should – and shouldn’t – splash the cash during the first few years of operation.

Denise Shull, author, also gave a bespoke session on decision-making and how to mitigate risk, providing useful tips for COOs navigating the pandemic and our likely post-COVID-19 working environment. These included how to make decisions in high pressure scenarios and also harnessing your emotions when in the environment of an emerging manager.