Differentiated insights come from investment managers who are different.
Expect Equity believes...
- Under-represented investors have at least as much investment skill and investment judgment as over-represented managers have.
- And yet they are systematically passed over for investment allocations due predominantly to allocator incentives that materially favor incumbents.
As a result, this 1.4% has been stubbornly persistent for over a decade.
Why has there been so little progress?
It is not that under-represented managers lack investment talent.
It is not that under-represented managers lack the desire and capacity to build firms and funds at scale.
It is not that under-represented managers lack the ability to lead and build firms with exceptional investment cultures.
To the contrary...
It is that they are stuck in a vicious cycle of under-capitalization.
Expect Equity’s goal is to start to break that cycle in a manner that recognizes the on-the-ground challenges that those in the allocator community face, and that lowers the barriers that have held back progress for so long.
Expect Equity incubates public equity talent. We focus on empowering those least well served by the systems of capital formation that exist today.
Expect Equity creates the conditions necessary for under-represented portfolio managers to build a track record and develop long-term relationships with allocators.
We have one goal: to launch independent firms with at-scale funds. Alongside our founding partners, we’re determined to fix the last-mile pipeline problem in finance.
How?
We’re pioneering a new and innovative way to empower under-represented managers to build a track record and launch their own funds. Our goal isn’t just to create one firm, but to pave the way for many more.
Our approach creates change as much now as it does in the future, by shining a light on differentiated managers and encouraging more diverse entrants.
Our goal is to expand the universe of managers who can launch - at scale - in the most direct way possible.
We provide, enable or facilitate the three key inputs a manager who aspires to launch independently needs to achieve this goal.
What we provide/enable
Access to capital and relationships with institutional allocators
A track record
High-quality back office infrastructure
Our Principles
We’re transparent, even on issues that seem complex and opaque.
We’re honest, even when it’s inconvenient.
We see respectful feedback as a gift, even when it’s uncomfortable.
Expect Equity is building a community of investors who believe in this too — who believe that taking non-consensus and unconventional views is a source of outsized return potential, and intrepidly pushing those in seats of power to rethink their under-writing process and reliance on shortcuts that privilege incumbents. Higher returns spring from diversity and divergence. It won’t always be comfortable, but we believe it will ultimately be very rewarding.