Fund Manager Selection: Key Takeaways from TIDE Austin

Across asset classes, the tailwinds that lifted many managers have faded, and allocators are looking for evidence of repeatable results. For managers, that means demonstrating a clear edge, returning capital, and staying aligned with limited partners (LP). For allocators, that means committing the time and resources to find them.

That was a key theme in fund manager discussions at The Investment Diversity Exchange (TIDE) Austin conference on October 8, 2026, which EisnerAmper Partners Bonnie Sussman and Jennifer Cuello attended. TIDE brings together industry leaders, senior executives, and innovators to create opportunities and drive value. The organization works to advance its primary mission of building connections across race, ethnicity, and gender within the investment sector, and its events boast a strong Limited Partner (LP) to General Partner (GP) ratio. The Austin event paired wellness and relationship-building with insights on private equity, venture capital, private credit, hedge funds, and emerging managers. Below are the key themes panelists and participants shared.

Key Takeaways

• At the October 8, 2026, TIDE Austin conference, panelists said fund manager selection now favors repeatable results over returns driven by market tailwinds.
• Allocators often consider four factors when selecting managers: the people at the firm, the manager’s experience, repeatable performance, and portfolio fit.
• Agentic artificial intelligence (AI) lowers the barrier to entry for new fund managers, which makes it harder for any one manager to stand out. Larger managers may hold an advantage through existing infrastructure.
• Small allocator teams cannot easily find the top emerging managers on their own, so they often start with a wide funnel and narrow it as patterns emerge.
• In Venture Capital, panelists said that the greatest returns can come from investing at the non-consensus stage, before valuations converge.
• In private equity, liquidity is paramount: Panelists increasingly view distributions to paid-in capital (DPI) as a more meaningful measure than internal rate of return (IRR).

How Is AI Changing Fund Manager Selection?

TIDE’s panelists noted that agentic AI lowers the barrier to entry for new fund managers, but differentiating becomes more difficult. Larger managers may have an edge due to their existing infrastructure. The challenge of standing out sets the stage for the day’s central conversations: how allocators find the right managers.

How Do Allocators Find and Evaluate Fund Managers?

The emerging manager pool has grown significantly in the past few years, and many allocators cover it with small, focused teams. Panelists discussed that it would be dishonest to say that a small team can easily find the top managers on their own. Instead, allocators described starting with a wide funnel and narrowing it as patterns emerge across the many managers and strategies they see.

In their view, the most important factors when selecting managers are the people behind the firm, the edge they have, whether their performance is repeatable, and whether they are fit for their portfolio. There are thousands of emerging managers with good stories and firms with good deals, but one of the most important questions is whether they can perform consistently and demonstrate that their deals are not flukes.

What Do Allocators Look for in Venture Capital Managers?

Repeatability was front and center in the venture capital discussion. In venture capital (VC), panelists observed that the majority of capital is flowing to larger firms. Small funds can still generate strong returns, but higher return dispersion and greater valuation variation make repeatability harder to assess. Panelists noted that the best companies eventually reach a consensus valuation, so a manager stands out by finding deals at the non-consensus stage, where the upside is greater.

When evaluating VC managers, allocators said they look for a technical team that:

• Is capable of disruption.
• Possesses deep industry experience.
• Demonstrates founder-market fit.

They also favor thesis-driven funds that embody what they hope to invest in and are led by people with authenticity, passion, curiosity, honesty, and a deep inner “why.” One panelist noted that the founders who fall short do so not because what they’re building isn’t good enough, but because they don’t stick with it. When asked to describe VC in three words, panelists chose ‘barbelled, disruptive, and exciting.’

What are the key themes in Private Equity investment?

Private equity (PE) panelists focused on how managers and LPs are adapting to a changed environment. Interest rates rose sharply beginning in 2022, and panelists said that shift is separating managers who were fortunate to have tailwinds from those who can deliver repeatable results, with greater value dispersion among managers.

Duration was a key concern. Panelists pointed out that many 2005-vintage funds ran out of time between 2014 and 2019 and said they see similar ingredients today: interest rate disruption, portfolios and underwriting carried through COVID-19, a difficult geopolitical environment, inflation, tariffs, and now AI. Together, these factors are limiting exits because buyers lack visibility into terminal values.

Panelists called the question of whether private markets will outperform public markets a multibillion-dollar question. They explained that PE has historically held an edge through three levers: buying cheap and selling less cheap, adding inexpensive leverage, and growing EBITDA. Today, debt is still accretive but riskier, leaving PE with what one panelist called “half an advantage.” Returns will depend more on EBITDA growth, which puts a premium on strong teams that can attract talent.

It was also noted that public markets remain too short-term, and that the PE versus public markets is one of the three most debated issues at the Institutional Limited Partners Association (ILPA). Although PE has underperformed, panelists said it is facing less criticism at ILPA as LPs weigh concentration in public markets.

Why Does DPI Matter to Limited Partners, and What Are the Core Strategies for Liquidity?

Distributions to paid-in capital (DPI) was a recurring theme. Speakers gave three reasons it matters: LPs need cash to pay and reinvest; between two funds with the same total value to paid-in capital (TVPI), the one returning more cash is easier for an LP to support; and DPI shows a GP can deliver full value, from sourcing to value creation to exit. As a result, sponsors that haven’t generated liquidity face increased scrutiny on whether the reported value is real. Panelists suggested that an investment still held at cost after two to three years is probably impaired.

That pressure is driving growth in the secondary market as investors look to create liquidity. Panelists described secondaries as a durable toolkit, but noted that the market remains undercapitalized and depends on exits continuing. They cautioned that secondaries shouldn’t be used to address an inability to sell a portfolio company and called for deeper diligence and underwriting as deal quality comes into question.

The panelists described co-investment as an attractive area that needs LP capital, while primaries require selectivity because LPs are committing to a blind pool. Secondaries return money fastest, followed by co-investments and then primaries. Participants also flagged retail capital as a shift to watch, warning that retail is a consideration for every manager.

When asked to describe PE in three words, panelists chose “volatile, trapped, and strained.” They also pointed to AI roll-ups, continuation vehicles (CV), and the tranching and collateralization of risk as trends to watch. Still, panelists were clear about what good looks like: GPs who can demonstrate their edge, management teams that are aligned and willing to roll out significant equity, and a strong team, strategy, and track record. The ideal target, they said, is a quality company with high barriers to entry in a growing industry at a good entry valuation.

What Should Managers and Allocators Take from TIDE Austin?

The message from TIDE Austin was consistent across strategies: Allocators are becoming more selective, liquidity has regained importance, and managers must demonstrate a repeatable edge. In a market where capital is harder to secure and easier to compare, a compelling story is no longer enough. Investors want evidence that performance can be repeated across market cycles.

EisnerAmper’s Financial Services team is available to discuss what repeatable results and liquidity expectations mean for your fund or your manager search. Connect with our team through the form below to learn more.