Davis Polk partner Michael Hong was quoted in Buyouts discussing top trends shaping the emerging manager landscape, according to the Buyouts Emerging Manager Survey 2026.

The article highlights that crafting a compelling narrative is one of the six key trends identified by the survey. Across asset classes, new managers “have to be particularly creative about how they tell their story compared to their more established peers,” Michael said.

Seeding is another emerging trend on the fund and firm levels. 

“There are more new entrants into the seed market, as well as established multi-strategy firms buying stakes. They are providing initial capital commitments, sometimes large and maybe working capital, as well as networks, guidance and operational expertise in exchange for future revenue or profit share, or a proportion of carried interest, or a combination of the above,” Michael said.

Additionally, the piece states that independent sponsors are creating new approaches to funding deals.

Discussing the rise of a new model in which registered investment advisers with their own client base agree to an exclusivity deal with an independent sponsor and in return for financing receive first look at transactions, Michael notes, “A few asset managers have developed a track record of picking and choosing emerging managers really well and backing them.”

Overall, Michael sees an institutionalization of the emerging manager space, in which arrangements to finance independent sponsor deals and new vehicles launched by first-time managers are becoming more formalized, which in turn, is driving the evolution of a more organized marketplace for such transactions. 

“Six trends shaping the emerging manager landscape,” (March 16, 2026) (subscription required)

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