SAN FRANCISCO--(BUSINESS WIRE)--A new study conducted by the Association of Asian American Investment Managers (AAAIM) in partnership with Bella Private Markets (BPM) reveals a concerning issue: institutional investors frequently overlook funds managed by AAPI (Asian American and Pacific Islander) firms when granting access to Emerging Manager programs, despite evidence of strong performance.
This is the fourth report in AAAIM’s research series and focuses on the flow of capital from institutional investors, reviewing their intentions and outcomes in supporting AAPI-owned private equity firms through emerging manager initiatives. The report finds that AAPI-owned firms are often excluded from such programs, and even when they are eligible, they are frequently bypassed. Despite various efforts to increase diversity within the asset management industry, the study demonstrates that these initiatives have had minimal impact on boosting AAPI representation.
The research, however, uncovers one positive trend: AAPI managers who do gain access to institutional capital tend to outperform and are more likely to secure follow-on commitments from investors.
“Previous AAAIM studies have highlighted what many of our members have shared and what we have personally experienced—unconscious biases and mistaken perceptions of overrepresentation have led to limited opportunities for AAPI managers in the asset management space,” said Jim Park, CEO of AAAIM.
“The findings in this report are clear: AAPI managers contribute significantly to the asset management workforce and consistently deliver strong performance for investors. Yet, the industry isn’t fully capitalizing on the contributions of our community. In many cases, we’re not explicitly included in emerging manager programs, and even when eligible, we rarely get the opportunity to participate,” Park continued.
The report also shows that Emerging Manager programs have materially increased assets under management (AUM) for women and other minority groups. While AAAIM celebrates the positive impact the program has had on other communities, the study underscores the importance of expanding these opportunities to AAPI-owned firms. Doing so would open up untapped investment potential, enhance portfolio diversity, and strengthen the resilience of institutional portfolios, all while improving the chances for alpha generation.
Click here for more information on the study.
About AAAIM
The Association of Asian American Investment Managers (AAAIM) is a national 501 (c)(3) non-profit organization dedicated to increasing diversity and inclusion in the investment management industry, serving as a powerful voice for the Asian American and Pacific Islander (AAPI) community. AAAIM’s goal is to elevate underrepresented groups through education, networking, and empowerment. AAAIM is recognized as the national voice of AAPI investment managers and the only national organization dedicated to supporting the growth of AAPI investment managers. Our coalition of seasoned and rising investment managers is committed to mentorship, promoting access to capital, and educating the industry and public at large about prejudice experienced by AAPIs.
