About Syz Capital
- Swiss-based alternative asset manager with $1.5bn AUM.
- Part of the Syz Group, a family-owned firm focused on private banking and asset management.
- Invests across hedge funds, legal assets, and private equity, with Andrea leading the European Buyout Program.
- Strategy includes co-investments, secondaries, and fund investments, with a strong focus on independent sponsors.
“We actively work with emerging managers… especially using the independent sponsor model. It provides great alignment of interest.”
Backing emerging managers
- Syz is raising its second vintage in this strategy.
- The first fund (2020 vintage) backed two independent sponsor deals; the second is in closing for three more.
- Independent sponsors offer deal-level visibility, which is important when backing emerging GPs.
“We are actively backing independent sponsors. It’s a model that we really like. It provides great alignment of interest.”
Europe’s growing appetite
- The independent sponsor model is less mature in Europe than in the US. still under the radar but growing quickly, especially in the UK.
“It’s still much less understood compared to the US… but that creates market inefficiencies we can exploit in our favour.”
Advice for emerging managers
Andrea outlined clear advice for sponsors and managers seeking capital:
- Be hungry and aligned: Focus on carried interest over management fees.
- Show meaningful GP commitment: Not about absolute size; more about proportional sacrifice.
- Prepare for the fundraising grind: Don’t underestimate what’s required.
- Build a strong operational foundation: From SPV management to service providers, it’s critical.
“Don’t underestimate the fundraising effort. Even with a great deal, institutional co-investors still need to underwrite the GP first.”
“Pick the right service providers. There are operational complexities to this model that require proper advice.”
Due diligence and support
Syz Capital conducts operational due diligence and expects:
- Quarterly reporting and valuations
- Strong fund administration
- Legal and tax readiness at closing
- The firm actively connects emerging managers with trusted service providers.
“We often point managers to the right people to speak with… Investors can be a great source of advice, not just capital.”
The case for backing emerging managers
Andrea gave a strong argument for why LPs should pay more attention to the lower mid-market:
- Less capital saturation
- Lower competition and entry prices
- Broader exit universe
- More resilient distributions
“The lower mid-market has historically outperformed large cap… It’s more resilient and provides better value creation opportunities.”
“Who can buy a $5bn business? Not many. But the buyer universe for a $100m business is huge.”
Final thought
“Emerging managers shouldn’t just leverage their investors for capital, but also for insight, advice, and ecosystem connections.”