April 17th - Friday, 1:50PM

Investing in Emerging Managers:
Lessons from the Puerto Rico Fund for Growth

Led by:

Dr. Ernesto Villarini
Managing Director
Community Development Venture Capital Alliance

Session Summary

This session examines the design and execution of the Puerto Rico Fund for Growth (PRFG), a fund of funds managed by CDVCA that invests in first- and second-time fund managers. With a highly aligned base of two LPs, a delegated GP model, PRFG  offers a distinctive approach to capital formation in emerging markets that highlights the need for double bottom line approaches targeting both financial returns and economic development. The session will cover fund structure, manager selection, and portfolio construction across private equity, venture capital, and private credit, as well as the use of a co-investment sleeve to deepen exposure and partnerships. Attendees will gain practical insights into the role of anchor investors, the realities of fundraising for emerging managers, and key considerations for structuring and launching a new fund.

Session Topics

1. Fund Context, Design and Structure

• Fund of funds model with two LPs and delegated GP authority 

• Double bottom line approach 

• Allocation strategy across private equity, venture capital, and private credit 

• Co-investment sleeve (up to 15%) and its purpose 

2. Role as an LP: Beyond Capital

• Serving as anchor investor, validator, and closer 

• Supporting first- and second-time fund managers 

• Signaling effects and catalyzing additional capital 

3. Manager Selection and Underwriting

• Evaluating emerging managers without traditional track records 

• Key criteria: team, strategy, access, and discipline 

• Assessing fit within a broader portfolio 

4. Key Lessons Learned

• Importance of LP alignment and governance structure 

• Fundraising realities for emerging managers 

• Balancing financial returns with geographic and impact goals 

• What worked well and what could be improved 

5. Practical Takeaways for Fund Managers

• Structuring a fund with aligned LPs 

• Importance of early anchor capital 

• Defining a clear strategy and value proposition 

• Considerations for incorporating co-investments