Competition for capital remains fierce, with potential LPs more rigorous in their due diligence and more cautious than they have been in years. A sterling track record, a stable team and a differentiated strategy are now merely the price of admittance in the hunt for capital.

Snagging LPs and raising funds is more difficult than ever. “We had a market embracing risk in ‘13 and ‘14,” says Alan Pardee of Mercury Capital Advisors. “So if three guys left a big firm and talked about their record in a sector that made sense, those funds were getting raised, but that’s harder today.”