Emerging Manager Graduation
Graduation is a very exciting part of what we do at Progress. We have a successful track record of graduating emerging managers to direct hire assignments with our clients. Ultimately, our goal is to see managers who have performed well (in terms of investment performance and overall business operations) move to direct relationships with institutional investors. We have been privileged to serve as a resource for clients in this regard, and as a springboard for many managers over the years.
Our graduation program is a client-driven process based on a client's timing, need for a specific asset class or style, and risk/return preferences. Our clients can select from a deep bench of talent, including the pool of managers already in their own Progress portfolio and the larger pool of all Progress funded managers. Before we involve the client, we determine if the emerging manager is eligible for graduation based on a series of fundamental and quantitative criteria. Next we inform the client of that manager’s candidacy and readiness for graduation to direct hire. The client will then determine whether and when to graduate the manager.
The managers should be rewarded not penalized for doing an exceptional job. Accordingly, our process is structured to avoid loss of assets under management due to graduation. Graduating managers typically are invited to manage an equivalent or greater amount of assets. A graduating manager also is likely to increase assets under management simply by virtue of being recognized as a mainstream firm eligible for direct hire.
Progress’ graduation criteria are not solely a function of a firm's assets under management. We also consider many other factors, such as financial stability, track record, organizational and operational depth, success in implementing industry best practices, the tenure and maturity of the firm, the level of diversification in its client base and its ability to take in large institutional assets.