A new market study from Corpay shows that emerging private‑equity managers without a spin‑out background struggle to secure general‑partner financing. The report pulls lender insights from Alpha Match, revealing a gap between first‑time fund interest and reality. This gap could cost new funds millions in deal costs and delays daily.

While 71 percent of active lenders in the Alpha Match database express openness to first‑time funds, that willingness drops sharply when a specific case is presented. The study notes that non‑spin‑out managers face higher scrutiny and longer approval timelines, tightening the capital supply for fresh entrants in the market today.

The findings highlight a structural hurdle for emerging managers who lack the brand equity of established firms. Investors may shift toward spin‑outs, perceiving them as lower risk, while the broader industry could see a consolidation of financing power among a narrower group of proven names in the capital market today.

For fund managers, the report signals a need to build stronger relationships with banks and demonstrate track records before seeking GP financing. Failure to do so could translate into higher borrowing costs or outright denial, tightening the competitive edge that new funds rely on to capture deals in the landscape.