Sassaman & Co. | Methodology

1. Overview

The Sassaman Index combines 5 measures of fundraising conditions for emerging private fund managers into a single reading from 0 to 100. Each measure is scored from public data, normalized to a common 0 to 100 scale, and weighted. A reading of 50 indicates conditions that are normal for the period.

Coverage. Emerging managers: a manager's first, second or third fund. Private equity, venture capital, private credit, real estate and other closed-end private funds; hedge funds excluded.

The weights published here are read from the same configuration file used to calculate the Index, so this document always reflects the methodology in effect.

2. Components

Index components, sources and weights
Component	Source	Weight
First-Time Fund Launches	SEC Form D filings	30%
Emerging Follow-On Funds	SEC Form D filings	20%
Emerging Share of New Funds	SEC Form D filings	15%
Credit Conditions	Moody's Baa corporate yield minus 10-year Treasury (FRED: BAA10Y)	20%
Rate Environment	2-year Treasury yield (FRED: DGS2)	15%
Total		100%

2.1 First-Time Fund Launches

How many managers are bringing a first fund to market. The most direct sign that new managers can raise capital.

Measurement. Growth in new Fund I programs versus a year earlier (seasonally adjusted, trailing six months), as a z-score against the prior five years of growth rates, mapped to 0–100 with the normal cumulative distribution. A score of 50 means launches are growing at a typical pace for the period.

2.2 Emerging Follow-On Funds

How many young managers are returning to market with a second or third fund. Investors re-upping is a test of whether early funds are delivering.

Measurement. Growth in new Fund II and Fund III programs versus a year earlier (seasonally adjusted, trailing six months), as a z-score against the prior five years of growth rates, mapped to 0–100. A score of 50 means a typical pace for the period.

2.3 Emerging Share of New Funds

Whether emerging managers are gaining or losing ground against established firms in new fund launches, compared with a year earlier.

Measurement. Change over the past year in emerging managers' share of new fund programs (trailing six months, seasonally adjusted), as a z-score against the prior five years, mapped to 0–100. Using the change rather than the level removes the long-term drift toward larger managers.

2.4 Credit Conditions

The price of risk. When corporate credit spreads are tight, investors are more willing to back new and unproven managers.

Measurement. Monthly average spread, ranked against the prior five years (a lower spread ranks higher). The score is the percentile rank, so 50 means a typical spread for the period.

2.5 Rate Environment

The direction of short-term interest rates. Rising rates raise the bar private funds must clear and pull capital toward cash and bonds.

Measurement. Twelve-month change in the monthly average 2-year Treasury yield, ranked against the prior five years (falling rates rank higher). The score is the percentile rank, so 50 means a typical rate move for the period.

3. Calculation

The Index is the weighted sum of the component scores, rounded to one decimal place. A component with missing data for the month is excluded and the remaining weights are rescaled to sum to 1; any such exclusion is noted in that month's commentary.

4. Condition bands

Condition bands and their ranges
Condition	Reading
Frozen	0 to under 20
Tight	20 to under 40
Balanced	40 to under 60
Favorable	60 to under 80
Hot	80 to 100

5. Limitations

Form D data begins in 2009. Managers active before then appear new at first, so readings before 2014 are not calculated.
Not every private fund files a Form D, and many report an indefinite offering size, so the Index measures activity and trends rather than total dollars raised.
Single-deal SPVs, wealth-platform feeder funds, insurance-dedicated funds and continuation vehicles are excluded. Identifying them relies on filing patterns and may misclassify a small share of vehicles.
A fund's number (I, II, III) is inferred from its name and from the manager's filing history. Managers that raised funds outside the United States before their first U.S. filing may be counted as emerging.

6. Version history

Methodology versions
Version	Date	Changes
1.0.0	September 27, 2026	Initial methodology: emerging-manager fundraising conditions from SEC Form D filings and U.S. rates. Every component is measured against the prior five years, so a reading of 50 means conditions are normal for the time: fund launches by their growth versus a year earlier, credit spreads and rate moves by percentile rank. Seasonal factors are estimated only from prior years, so no reading uses information from after its month.

Each published edition records the methodology version under which it was calculated and is never recalculated.