In the first half of 2026, colleagues across Langham Hall’s offices gave their time, energy and support to a wide range of charitable initiatives, from individual fundraising challenges to office events and community activities.

Below is an overview of how our teams have contributed to organisations addressing important social and environmental challenges.

We would like to thank everyone who took part, donated, volunteered or helped organise an initiative.

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London

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The London office started the year with a £150 donation towards Megan Eccles’ London Landmarks Half Marathon fundraiser, supporting her efforts to raise money for Mental Health UK.

In May, our Charity Committee collaborated with the Wellbeing & Social Committee to host a pub quiz fundraiser. Donations of £75, £125 and £200 were awarded to the top three teams’ chosen UK charities. A further £150 donation was made to Olivia Henry's Royal Parks Half Marathon fundraiser, supporting her efforts to raise money for the British Heart Foundation.

Lastly, Khadija Chaudhary has partnered with Salam Charity and is currently fundraising to help deliver life-changing aid to Syrian and Palestinian refugees in Lebanon. Langham Hall has donated £150 to support her journey to Lebanon to deliver hands-on support.

Looking ahead, the London office will be holding a special wellbeing initiative for National Samaritans Day. Later this year, staff will also be volunteering at a local food bank, helping to organise and pack food boxes.

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Jersey

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The Jersey office has continued its commitment to supporting the local community through a range of charitable initiatives, helping both its chosen charities, Jersey Hospice Care and Dementia Jersey, and several other local organisations. Colleagues have taken part in fundraising events, sporting challenges and community activities.

The year began with eight colleagues taking part in the inaugural Love Hospice 10K in February.

In March, the office proudly sponsored three colleagues who participated in the Hospice 2 Hospice Half Marathon. To support their fundraising efforts, the office hosted a raffle, raising £227 for Jersey Hospice Care. Later that month, Team Langham Crawl took part in the Swimarathon, a community event raising money for local charities. The team completed an impressive 79 laps, covering 3,950m and beating their previous record.

April was another busy month for fundraising and community engagement. The Jersey office sponsored colleague Charlotte as she took part in the London Landmarks Half Marathon in support of Jersey Heart Support Group. A healthy bake sale was also organised, raising £170 towards her fundraising efforts. The office also sponsored the Sandpit Crawl obstacle and entered a team in the True Grit Wetwheels Challenge. The event raised funds for Wetwheels Jersey, a charity providing life-changing access to the sea for people with disabilities.

In May, team members took part in the annual James Keating Football Tournament, an event close to the hearts of many at Langham Hall. An impressive £587 was raised through office fundraising efforts, with all proceeds supporting Autism Jersey.

To round off the first half of the year, colleagues attended two events hosted by the office’s chosen charities, Dementia Jersey's Afternoon Tea and Jersey Hospice Care's Summer Huddle. The Afternoon Tea celebrated Dementia Jersey's achievements over the past year and highlighted the positive impact of its work within the local community. The Summer Huddle brought together supporters for a garden party featuring a raffle and pop-up shop, providing an opportunity to learn more about Jersey Hospice Care's ongoing initiatives.

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Guernsey

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The Guernsey office has taken part in several fundraising initiatives during the year. For Red Nose Day, colleagues supported Comic Relief through a team fundraising activity.

Staff also took part in the 2026 Saffery Rotary Walk, with a relay team and four individual entrants completing the challenge in support of local charities.

The office is delighted to announce Autism Guernsey as its Charity of the Year for 2026. The organisation provides invaluable support to autistic people and their families across Guernsey. Throughout the year, the team will focus on raising both funds and awareness through a series of initiatives.

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Luxembourg

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For International Women’s Day, the Luxembourg office made a donation to Femmes en Détresse, a non-profit organisation supporting women and children facing domestic violence and social distress. The office also hosted a Lunch & Learn panel featuring female leaders from our team, who shared insights on career growth, confidence and resilience.

Staff later organised a “Cooking for Purpose” charity lunch, inviting employees to bring a dish representing their nationality or cultural background. Colleagues joined the lunch by making a contribution, with all proceeds donated to Fondation Cancer Luxembourg. In addition to the amount raised by employees, Langham Hall made a further donation to support the foundation’s work.

The office continues to participate in The Social Goal, an initiative that brings together corporate teams across Europe and Asia to support local NGOs through sport. As part of this programme, the Langham Hall football team competes alongside other organisations in a collaborative environment that promotes teamwork and supports positive social impact.

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Thank you

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To everyone who took part, donated, volunteered or helped organise an initiative during the first half of the year, thank you.

We are proud of the contribution colleagues have made to the communities around them and look forward to continuing this work throughout 2026.

A non-traditional start with a clear opportunity

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Megan’s journey from Trainee to Associate Director at Langham Hall reflects the value of adaptability, continuous development and being given the right opportunities to grow.

Megan joined the firm from a non-traditional background, having previously worked in organising events for professional orchestras across the UK. Moving into financial services was a significant transition and one she approached without fixed expectations. Instead, it was Langham Hall’s clear commitment to training and career progression that stood out. The presence of genuine opportunities for advancement made the role particularly appealing.

That decision has proven to be well-founded. Since joining the Guernsey office in 2020, Megan has become an Associate of the Chartered Governance Institute and has progressed to Associate Director. While her previous experience may appear unrelated, she has found that many of the core skills are highly transferable. Coordinating complex events, managing stakeholders and overseeing multiple moving parts have translated effectively into managing client workstreams and delivering consistent results.

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Adapting to a fast-paced, evolving environment

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One of the most notable aspects of Megan’s early experience at Langham Hall was the pace of change. The business environment is shaped by evolving client requirements, regulatory developments and internal growth, all of which require a high degree of flexibility.

At the outset, this constant change presented a challenge. Over time, however, it has become one of the most engaging elements of the role. In particular, the increasing influence of technology across the industry continues to drive both internal efficiencies and new client opportunities, reinforcing the importance of staying adaptable and forward-thinking.

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Building expertise and developing leadership

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Technical knowledge has been a critical component of Megan’s development, supported by professional qualifications and ongoing learning. However, her progression into a leadership role has also required a strong focus on people management and team development.

Megan places significant importance on understanding how individuals work most effectively, creating clarity around expectations and fostering an environment where team members feel both trusted and empowered to contribute. A key aspect of her leadership approach is encouraging critical thinking. She actively promotes new ideas and improvements to existing processes, recognising that innovation is often driven by those willing to question established practices rather than accept them.

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The importance of support and mentorship

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Support from colleagues and senior leadership has played an important role in Megan’s journey. Through the firm’s mentorship programme, she has benefited from perspectives beyond her immediate team, helping her navigate challenges and develop her approach.

At the same time, senior leaders have supported her progression by striking a balance between autonomy and oversight. This has enabled Megan to take ownership of her responsibilities and build confidence in her decision-making, while maintaining access to guidance when needed.

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Balancing professional and personal commitments

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Like many professionals working towards qualifications, Megan experienced the challenge of balancing study commitments alongside full-time work and personal interests. Managing these competing demands required discipline, organisation and resilience.

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Growing with the business

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During Megan’s time at Langham Hall, the Guernsey office has undergone significant growth, expanding from 20 employees to over 90. This growth has brought changes in scale, structure and infrastructure, including a move to a new office space.

Despite this evolution, the organisation has retained a strong sense of culture and belonging. Maintaining this culture while continuing to grow has been a key factor in supporting employee engagement and long-term development.

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Advice for future trainees

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For new trainees entering the business, Megan emphasises the importance of curiosity and developing a broad understanding of client activity. Taking the time to ask questions and engage with work beyond immediate responsibilities helps to build context, strengthen technical understanding and ultimately improve performance.

Developing this wider perspective enables individuals to contribute more effectively and positions them for future progression within the organisation.

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Redefining success

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As her career has progressed, Megan’s perspective on success has also evolved. While professional achievement remains important, she now places equal value on having the time, resources and headspace to pursue interests outside of work.

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Conclusion

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Megan’s journey from trainee to Associate Director highlights the value of transferable skills, curiosity and the confidence to embrace change. It also reflects something central to Langham Hall’s culture: that long-term careers are built through trust, ownership and sustained investment in people.

A compliance manager’s perspective

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In fund administration, compliance plays a central role in maintaining trust, transparency and long-term success. We sat down with Steven Brouard, Compliance Manager in our Guernsey office, to learn more about what working in the field really involves and why it is such a meaningful career path.

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A role built on precision and trust

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As a manager in a fund administration firm, the role is varied and rarely routine. It sits at the intersection of operations, regulation and client service and requires a strong eye for detail and a proactive mindset.

Compliance is not just about ticking boxes, it is about understanding the purpose behind regulations and making sure the business operates with integrity at every level.

From monitoring regulatory developments to ensuring internal policies are up to date, the role is essential in safeguarding both the firm and its clients.

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What does a typical day look like?

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For Steven, a typical day is a balance between planned responsibilities and responding to the evolving needs of the business.

Much of his time is spent managing scheduled activities such as compliance monitoring and testing, while also responding to queries from colleagues and providing advice and guidance on matters such as complex customer due diligence (CDD) requirements.

Given the varied nature of the role, effective planning and prioritisation are essential. Steven explains that managing expectations and balancing demand are key aspects of the job, ensuring that support is delivered efficiently across the business. Maintaining an approachable and proactive attitude is equally important, helping to foster strong working relationships and encouraging colleagues to seek guidance when needed.

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What the role demands

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When asked about the most valuable skills in a compliance role, Steven refers to what he calls the "three P's": Patience, Pragmatism, and Prudence.

Patience is essential for remaining calm and focused under pressure, particularly when dealing with complex issues or competing priorities. Pragmatism enables compliance professionals to balance risk management with commercial considerations, helping the business achieve its objectives while remaining within regulatory requirements. Prudence, meanwhile, draws on experience and sound judgement to avoid unnecessary risk and support effective decision-making.

Together, these qualities help compliance professionals navigate challenges, provide practical guidance, and contribute positively to the organisation's success.

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Why it matters

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At its core, compliance is about protecting clients, maintaining market confidence and upholding the reputation of the firm.

Steven believes that a strong compliance culture and robust control framework are essential for a highly regulated financial services organisation. These foundations help ensure the business continues to adhere to relevant legislation and regulatory guidance while remaining alert to the ever-present threat of financial crime.

By embedding compliance throughout the organisation, firms can operate with confidence, protect their reputation, and demonstrate their commitment to the highest professional standards. This helps reinforce trust and positions the business as a reliable and dependable partner for its clients.

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Making an impact

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Ultimately, compliance is about more than regulation, it is about accountability.

The work carries real impact, helping to protect clients, support the integrity of the business and uphold industry standards. For those working in the field, that sense of responsibility is part of what makes the role so rewarding.

For many private equity managers, growth creates a paradox. Success brings larger funds, more investors and greater opportunity, but it also exposes the limits of the infrastructure that made that success possible.

Processes that worked well at an earlier stage can begin to strain under the weight of more complex funds, more demanding reporting cycles and greater LP scrutiny. That is the challenge now facing a growing number of mid-market managers.

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A changing fundraising landscape

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Private equity's fundraising market is becoming increasingly polarized. At one end sit the industry's largest platforms: mega-funds that have rebounded strongly, capturing a growing share of available capital and benefiting from scale, brand recognition and long-established investor relationships. At the other are specialist and emerging managers that continue to attract capital through differentiated strategies, deep sector expertise and access to opportunities larger firms struggle to pursue efficiently.

The pressure is felt most acutely in the middle. For many mid-market managers, the challenge is no longer simply generating returns. It is generating sufficient liquidity and distributions to support the next fundraise in a market where investors have become markedly more selective. That is exposing a structural problem: as firms grow, they often reach a point where the operating model that supported their earlier success is no longer sufficient for the next stage of development.

Capital is flowing toward a smaller number of managers. Nearly 46 percent of all capital raised in US private equity in 2025 went to the ten largest funds, up from around 35 percent the previous year.¹ McKinsey's Global Private Markets Report 2026 finds the same pattern globally, with funds above $5 billion taking 35 percent of capital raised, up from 28 percent in 2021.²

A manager that has grown from $250 million to $750 million in assets under management is no longer small enough to run on entrepreneurial energy, spreadsheets and a single overextended CFO. Yet it may not be large enough to absorb the cost of an institutional technology stack, a large internal finance team and an enterprise-grade operating platform. Many firms therefore find themselves caught between two stages of development: too large to operate informally, but too small to operate like the industry's largest institutions. That is the mid-market scale trap.

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Liquidity has made the problem harder

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Data shows exit activity rebounded through 2025, with double-digit growth in exit count for the first time in four years, yet fundraising still recorded its weakest year since 2020. ³ The recovery in dealmaking has not reached capital formation. Distributions remain the currency of the next fundraise. This underlines why secondaries and continuation vehicles have moved from the periphery toward the center of many managers' thinking. These tools can solve liquidity challenges, but they bring operational demands of their own; valuation governance, conflict management and investor reporting all come under greater scrutiny.

For a manager already caught in the middle, that complexity matters. A continuation vehicle, secondary process or extended hold period can create liquidity optionality; however, it also exposes whether the platform can handle greater complexity without delay, reconstruction or excessive manual effort.

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Growth changes what LPs underwrite

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As managers grow, investors expect the organization to mature alongside them. At an earlier stage, LPs may back a strong track record and a tight team; as scale increases, they begin to underwrite the institutional infrastructure itself.

This is now visible in how allocations are made. Private Funds CFO's 2026 research on the future of fund services points to greater scrutiny of back-office functions as part of due diligence, while live fundraising processes suggest the examination now extends beyond the manager itself. LPs are evaluating the business and the service providers around the business before committing capital. Investors are assessing the platform as a whole, not the strategy alone.

In previous cycles, LPs primarily underwrote the manager. Today they are underwriting the platform around the manager. Governance, reporting, operational resilience and the quality of key service providers have all become part of the assessment.

This reflects a broader flight to quality taking place across private markets. Investors are becoming more selective about the managers they back, the assets they own and the partners they work with. In a market where capital remains available but confidence is harder to earn, quality is assessed across the entire ecosystem rather than any single component of it.

One detail in the fundraising data illustrates the consequences. The median time to close for US funds that successfully raised capital in 2025 fell to 12.2 months from 16.7 months the year before.⁴ That is not a sign of an easier market. It is a sign of a more binary one. Funds that LPs have already underwritten, organization included, close relatively quickly. The rest increasingly struggle to reach the finish line.

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The operating model that worked yesterday

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The constraint is rarely capability. Most mid-market managers have strong teams who understand their portfolios, know their investors and work hard to produce accurate information. The challenge is that the demands on the platform often grow faster than the resources surrounding it.

More funds create more reporting cycles. More investors create more bespoke requests. More complex structures create more reconciliation points. Longer holding periods bring greater scrutiny of valuations, liquidity and distributions. Fundraising itself adds another layer of pressure, usually at the moment finance and operations teams are already stretched.

At a certain point, manual effort stops being a sign of commitment and starts becoming a constraint. The platform still functions, but it relies on a small number of people and a disproportionate amount of intervention to keep moving. Information becomes harder to locate, processes become harder to evidence and institutional knowledge becomes concentrated in too few hands.

That is where the scale trap begins. The firm has outgrown the simplicity of its earlier operating model but has not yet built the structure required for its next phase.

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Why this has become a fundraising issue

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LPs are no longer assessing whether a manager has performed. They are increasingly assessing whether that performance can be repeated. That question extends beyond investment strategy into governance, reporting, operational resilience and the ability of the organization to support future growth.

A firm may have a strong track record, a compelling portfolio and a clear investment thesis. Yet if the platform appears stretched, overly dependent on individuals or slow to produce information, investors may hesitate. The concern is rarely that something is wrong today; it is whether the platform can withstand the complexity that comes next.

The answer is not for every mid-market manager to build like a mega-fund. That would be unrealistic and, in many cases, unnecessary. The more useful question is how a growing manager creates leverage. Many firms are doing so by extending their operating platform through specialist partners rather than attempting to build every capability internally. Done well, that approach can provide institutional-grade support without institutional-scale overhead, allowing management teams to remain focused on investing, fundraising and managing portfolios.

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Avoiding the trap

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The firms that navigate this stage successfully tend to recognize the issue before it becomes urgent. They do not wait for operational strain to surface during diligence. Instead, they ask whether the organization is prepared for the next fundraise, the next portfolio and the next level of LP scrutiny.

In practice, that means:

• Clear ownership of data, reporting and decisions
• Reduced reliance on individual memory or key-person workarounds
• Reporting that can be reproduced without reconstruction
• Service providers who understand the structure, not just the task
• An operating model that can absorb complexity without constant manual intervention

None of this requires unnecessary complexity. In many cases, the most effective operating models are disciplined precisely because they are simple. The objective is not to look larger than the organization is; it is to build confidence in its ability to operate consistently as it grows.

For a CEO or managing partner assessing where their firm stands today, three questions are worth considering:

• Is the platform we have today the platform our next fund will require?
• If our most experienced finance professional left tomorrow, what would we struggle to produce?
• When diligence reaches our operating model and the service providers around it, what will it find?

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The next stage of growth

Private equity has always rewarded successful managers, but the definition of success is changing. In a market where capital is concentrated and diligence reaches deep into the operating model, LPs are committing to organizations, not simply funds.

The scale trap is not growth itself. It is assuming that the platform has kept pace with the assets, investors and scrutiny it now carries.

For many mid-market firms, that assumption may determine whether the next fundraise becomes a stepping stone or a stumbling block.

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¹ PitchBook, 2026 US Private Equity Outlook, December 2025

² McKinsey & Company, Global Private Markets Report 2026

³ PitchBook, 2025 Annual US PE Breakdown, January 2026

⁴ PitchBook, 2025 Annual US PE Breakdown, January 2026

Langham Hall has appointed Richard Li as Group Chief Financial Officer.

The appointment reflects Langham Hall's continued investment in the foundations needed to support growth across its international business. As the firm expands across jurisdictions and service lines, Richard will help improve reporting, controls, data quality and systems, ensuring the business remains well positioned for the future.

Richard joins at a time when fund managers and their investors are placing increasing importance on governance, information quality and operational resilience. These have always shaped how Langham Hall works with clients and become even more important as the business expands.

As Group CFO, Richard will oversee budgeting, forecasting and long-term planning, alongside tax, treasury, governance and regulatory relationships. He will also lead the development of the global finance team and use technology to provide clearer insight into the firm's operations.

Richard brings significant finance and operational experience, gained through his roles at Kroll, KPMG and BDO.

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Rob Short, Managing Partner at Langham Hall, said: “As we grow internationally, it is important that we keep investing in the people, systems and discipline that allow us to serve clients well. Richard brings exceptional energy, commercial judgement and finance experience, and I am delighted to welcome him to Langham Hall.”

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Richard Li, Group Chief Financial Officer at Langham Hall, added: “What attracted me to Langham Hall was the combination of ambition, entrepreneurial spirit and a clear commitment to quality, values that strongly resonate with my own. The firm has built an impressive reputation whilst retaining a strong sense of purpose and I am delighted to be joining at such an exciting stage in its development.”

Langham Hall has been named Best Fund Administrator: $50-500bn Assets Under Administration at The Drawdown Awards 2026.

Tom Pinnell, Head of Commercial, Europe, commented: "This award reflects what we set out to do every day. Our partner-led approach, robust controls and open-architecture technology are built around one purpose: giving our clients the certainty and confidence they need to focus on what matters most. We are proud that the industry has recognised that commitment."

The Drawdown Awards celebrate excellence among the advisers and service providers who power European private capital operations and is judged by leading private capital COOs, CFOs and CTOs.

海外で資金を募るとき、日本の運用者が気づくこと

投資信託は国内では当たり前に見える。しかし国境を越えれば、投資家が期待する器とは限らない。

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宮田 忍

ランガムホール 日本責任者

日本のファンドマネージャーと話していると、ある一点が驚くほど頻繁に現れます。驚きは、ファンド・ストラクチャリングが複雑だということではありません。長年親しんできた投資信託以外にも選択肢がある、ということです。

多くの運用者にとって、投資信託は最初に出会い、その後も繰り返し出会う構造です。そうした経験を重ねるうちに、一つの選択肢だったものが、やがて当たり前の前提になっていきます。

それ自体は自然なことです。投資信託は何十年にもわたり日本の投資市場で重要な役割を果たしてきましたし、適切な場面では今も非常に有効な構造です。

問題は、その構造が間違っていることではありません。長く使われてきたことで、他の選択肢が見えにくくなることです。そして、その中には投資家の期待により適したものが含まれている場合もあります。

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前提と投資家が出会うとき

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国際的な資金調達の興味深い点の一つは、投資家が同じ前提で投資機会を見ているわけではないということです。

日本では、多くの運用者がまず投資信託を思い浮かべます。米国では、多くのプライベート市場の投資家がまずリミテッド・パートナーシップを思い浮かべます。欧州では、規制対象のオンショア型ファンドに馴染んでいる投資家が少なくありません。

どれが正しく、どれが間違っているという話ではありません。それぞれが育ってきた市場環境を反映しているだけです。

課題が生じるのは、ある市場では自然に思える前提が、別の市場の投資家に提示されたときです。

そこで初めて、戦略についての議論が、構造についての議論へと変わることがあります。

投資家がその器に反対しているからではありません。その器を異なる期待のもとで見ているからです。

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日本の見過ごされがちな強み

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ここに、日本の興味深い特徴があります。

投資信託は依然として公開市場のエコシステムに深く根づいています。一方で、プライベート資産の拡大とともに、リミテッド・パートナーシップも広く利用されるようになってきました。

その結果、日本は二つの伝統を理解する市場になりつつあります。

これは国際的な資金調達において重要です。運用者は必ずしも投資家に馴染みのない構造を受け入れてもらう必要はありません。すでに海外投資家が理解しやすい選択肢を持っている場合が少なくないからです。

重要なのは、その選択肢が存在することに気づくことです。

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慣行の先を見る

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この議論は、投資信託がリミテッド・パートナーシップに置き換わるべきだという話ではありません。また、どちらか一方が本質的に優れているという話でもありません。

より重要なのは、対象となる投資家に最も適した構造を選ぶ前に、利用可能な選択肢を十分に検討したかどうかです。

実務的には、まず次のような問いを立てることが有効です。

・そのファンドはどのような投資家を想定しているのか

・投資家はどの程度の流動性を期待するのか

・どのように、そしてどの程度の期間で資金をコミットするのか

・どの要素が投資家にとって馴染み深く、どの要素に説明が必要なのか

こうした問いに答えることで、適切な構造はより明確になります。

以前の記事では、なぜ日本で投資信託が広く利用され続けているのか、そしてそれが多くの戦略に適している理由について考察しました。本稿で取り上げているのは別の問いです。

長年使ってきた構造だけが唯一の選択肢ではないと考えたとき、何が見えてくるのか。

優れたファンド構造は、慣れているから選ばれるのではありません。戦略、投資対象、そして投資家の期待に適合しているから選ばれるのです。

資金調達が国際化するほど、その違いはますます重要になります。

日本におけるファンド・ストラクチャリングについてご相談がございましたら、お気軽にお問い合わせください。

Strong performance remains essential. But in today's fundraising environment, institutional investors are looking beyond returns alone.

As private markets mature, LPs are placing greater emphasis on governance, transparency and the operational infrastructure that sits behind performance. Increasingly, they are assessing not only investment outcomes, but whether a manager has built a platform capable of supporting sustainable growth and meeting institutional expectations.

Speaking at PE Legal 2026 during SuperReturn week in Berlin, Christian Mohr, Partner and Head of Luxembourg AIFM at Langham Hall, shared four themes that are becoming increasingly important in LP due diligence:

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1. Valuation governance matters as much as valuation outcomes

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When performance is largely unrealised, LPs often focus less on the headline number and more on the process behind it. Investors want confidence that valuations are supported by robust governance, clear documentation and appropriate oversight. They expect methodologies to be applied consistently over time and assumptions to be capable of standing up to scrutiny.

Transparency is also becoming increasingly important. Many LPs want greater visibility into the drivers of value creation, including operational performance indicators that help distinguish between genuine business improvement and broader market movements. Valuations will never be perfect, but institutional investors increasingly expect discipline, consistency and a clear audit trail behind every decision.

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2. Pre-marketing should be treated as the first phase of fundraising

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Many managers still view pre-marketing as an informal precursor to fundraising. Increasingly, regulators and investors do not. Under AIFMD, pre-marketing is a regulated activity and requires the same level of planning and operational discipline that managers would apply later in the fundraising process, including clearly defined target investor groups, appropriate documentation and effective tracking of investor interactions.

Managers can also underestimate the complexity created by differing requirements across jurisdictions and the point at which pre-marketing activities may trigger formal marketing obligations. For many firms, institutional readiness starts long before launch. Pre-marketing should be viewed as phase one of fundraising rather than a soft, unregulated preliminary step.

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3. LPs are underwriting the platform, not just the strategy

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A strong track record may secure a meeting, but it is no longer sufficient on its own. Institutional investors increasingly assess the entire operating platform supporting a fund. Governance arrangements, reporting frameworks, risk controls and the delineation of responsibilities between the GP, AIFM and administrator are all coming under greater scrutiny.

Investors want evidence that oversight is real rather than theoretical. They expect timely reporting, meaningful transparency and a clear understanding of regulatory obligations. In many cases, LPs are evaluating whether the operating model is capable of supporting future growth as much as they are assessing historic performance.

Strong returns get managers in the room. Infrastructure gets them allocated.

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4. Not all issues are viewed equally

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Perhaps the most important distinction for managers is understanding which concerns investors consider manageable and which are far more difficult to overcome. Operational shortcomings, reporting gaps or developing infrastructure are often viewed as fixable, particularly for emerging managers. LPs are generally supportive when firms are transparent about challenges and proactive in addressing them.

Governance and integrity concerns are different. Questions around valuation behaviour, conflicts of interest or resistance to oversight can quickly undermine confidence and are significantly harder to remedy. Ultimately, trust remains one of the most important factors in any fundraising process.

Institutional investors understand that no platform is perfect. What they look for is transparency, accountability and a willingness to be challenged. LPs can live with imperfection. They cannot live with a lack of trust.

The private equity industry is undergoing a quiet structural shift, one that is reshaping how capital is allocated and for the right managers, where the most compelling opportunities lie. At one end of the market, household names, Apollo, KKR, Carlyle and their peers are consolidating LP relationships at scale, offering breadth, brand and reliable returns across diversified platforms. At the other, a new generation of focused spinout managers is attracting serious institutional attention for a different reason: they consistently outperform.

For GPs considering a spinout or raising a first institutional fund, understanding this dynamic is more than academic. It defines the opportunity.

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Why first-time funds outperform

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The performance case for emerging managers is well-established and the data is compelling. Among fully realised buyout and growth private equity funds, the average Fund I has delivered an IRR almost 20% higher* than for a Fund IV and beyond.

The explanation is straightforward: alignment. First- and second-time managers typically commit a meaningful share of their own capital to the fund, closely aligning their interests with those of their LPs. At established platforms, senior professionals often divide their time between investing, marketing and managing internal complexity. At a spinout, the entire team is focused on one thing: delivering returns from a standing start. When the first fund is your firm's entire reputation, the incentive to perform is unambiguous.

There is also a structural advantage at play. Smaller, more focused funds are simply better positioned to access opportunities that larger vehicles cannot. A concentrated strategy targeting a specific sector or geography allows for deeper sourcing networks, faster decision-making and a closer relationship between GP and portfolio company. These are not incidental benefits, they are structural edges that compound over a fund's life.

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The LP calculus

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LPs are increasingly attuned to this. While the largest allocators will always maintain relationships with global platforms for the scale and predictability they offer, a growing cohort is carving out meaningful allocations to emerging managers precisely because the return profile is differentiated.

The trade-off is real. Deploying significant capital across multiple smaller vehicles is operationally more demanding than writing one or two large tickets to established names. Not every LP is structured to do it efficiently. But those who have built the frameworks to access this part of the market, through dedicated emerging manager programmes, co-investment rights or direct relationships, are capturing alpha that the rest of the market is systematically underweighting.

According to Preqin, first-time funds have outperformed established funds on average every year since 2005 and carry a higher probability of generating returns above 25% IRR. For LPs willing to do the work, the reward has been consistent.

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Building the foundation that earns institutional capital

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For those building something new, the data is encouraging. But performance potential and institutional credibility are not the same thing, and LPs are sophisticated enough to distinguish between them.

The most successful first-time funds start LP conversations with the right infrastructure already in place. Operational due diligence is a staple of the underwriting process for a majority of investors, and so knowing that a manager has the right operational and regulatory infrastructure behind them gives LPs confidence from the get-go. Simply put, it takes another “reason to say no” off the table.

This is where the choice of service providers, including fund administrator, becomes a strategic decision rather than an operational one. The right administrator brings more than processing capability. At the start of a fund's life, when track record is limited and the GP is asking LPs to back a team on potential, the quality of the operational infrastructure sends a signal. It demonstrates that the GP understands what institutional investors require, has the rigour to deliver it and is building a firm designed to scale.

For a startup manager, having a partner that can handhold from day one whilst also giving investors confidence in the operational robustness of a platform can be one more decision that moves the needle in the direction of success.

As an independent, partner-led firm, Langham Hall has been supporting new fund managers for over 20 years. As a result, we have deep experience handholding clients through the setup of new businesses. Clients gain access to experienced Partners who can guide them through the operational, regulatory and structural considerations involved in launching an investment product for the first time. Please do get in touch if you would like to discuss further.

*Source: Asante Capital Group analysis of Preqin Pro data